Working with a Title Company
Title Company Q&A - learn exactly what a title company does and how your escrow officer helps ensure that your real estate contract makes it to close.
Title Company Q&A - Homes.org asks escrow officer Samantha Conkey to explain what a title company does and how the team ensures that a real estate contract makes it to close.
Many people are familiar with the work of real estate agents and lenders, however when it comes to title companies buyers sometimes have a number of questions. We spoke with Samantha Conkey, Escrow Officer at Capital Title in Austin, TX, and discussed what it is a title company does and what their role is in the closing process.
What exactly does a title company do and how does it help facilitate the closing process?
The title company searches the title to the property and clears up any liens or clouds on the title before closing. We also serve as the middle man between the buyers, sellers, agents, attorneys and the lender to coordinate getting all of the necessary documents signed and all of the money distributed.
What is title insurance and why is it important in the home buying process?
Title insurance protects you against loss sustained by prior liens and from anyone trying to claim a legal interest in your property.
What can buyers expect working with a title company, how will both parties interact?
The title company serves as an uninterested party in the transaction, our purpose is simply to facilitate closing, to issue a clear title policy to the buyer, and to make sure all the monies due in the sale are collected and distributed appropriately.
Can you explain what a HUD-1 Settlement Statement is, how it plays into the closing process and what it contains?
The HUD-1 Settlement Statement is easily the most important document of the transaction. This is the document that itemizes all of the closing costs for both the buyer and the seller. This document is sent to the buyers and sellers typically about 1-2 days prior to closing and will let the buyer know the total due to close and how much the seller will net in proceeds from the sale.
What is a deed and why is it important?
The deed is the document the seller signs at closing to convey their legal interest in the property to the buyers. The title company records the deed with the county clerks office after closing so that it becomes public record. Once the deed is recorded the title to the property is legally transferred to the buyers.
What can buyers expect to experience at close?
Just be prepared to sign lots of paperwork! My closings are all about efficiency. There is a lot that needs to happen on the day of closing before the buyer can get their keys so I try to make my closings go as quickly and smoothly as possible. I am an expert on loan documents so I typically will just briefly summarize each document for the buyer so they feel comfortable signing and moving on to the next. After all of the paperwork is signed the title company has to get funding approval from the lender before the buyer can take possession of the property. This consists of sending several of the signed documents to the lender to be reviewed which can take anywhere from 10 minutes to a few hours.
Final Thoughts
It's clear that title companies are a key component in making sure there aren't any problems closing a contract. Your escrow officer will be an important point of contact once you have a signed contract, so make sure you work with a reputable title company that has a good track record. The decision is yours, but your real estate agent should be able to suggest title companies they have worked with in the past.
The three most important things a title company does during the closing process is conducting the title search to ensure there is a clear title on the property, providing title insurance to safeguard you in case any problems with the title arises in the future and is acting as the facilitator of the close keeping in contact with all interested parties to make sure everything gets completed on schedule.