A title company serves two roles in a real estate transaction:
The first, being a title search and examination of the property. A detailed search of public records is made to search documents which may affect the title of the property. These items include mortgages, liens, unpaid taxes, easements and other restrictions which may encumber the property. Next, a title insurance commitment is prepared which sets forth the requirements for establishing good and marketable title for the purchaser. The title commitment will also reflect any restrictions or other exceptions which may encumber the property.
The second role, of the title company, is known as the “escrow services.” The title company, through its escrow officers, oversees the closing of the transaction and insure that all the terms and conditions of the sales contract have been met and satisfied. The title company makes sure that all necessary documents have been properly executed, and makes all the appropriate disbursement of funds to insure that at the completion of the transaction, the buyer receives good and marketable title to the property. In many instances a lender provides funds to assist the buyer with the purchase price and the title company insures that it has followed all the closing instructions provided by the lender.
After the closing, the title company will record all necessary documents, forward all payments to any prior lender, Brevard County Tax Collector, and pay all parties who performed services or are due funds in connection with the closing.
How Can Title Insurance Protect You?
Title Insurance policies insure titles to real property for owners and mortgage lenders and provide the following protections:
- Payment of loss arising from hidden defects not found during a title examination or recording.
- Payment of legal expenses incurred to clear title defects, which threaten the lender or owner with loss.
- Assurance that the marketability of the property remains unimpaired from title defects.
Policies are issued based upon a search and review of the public land records and other relevant documents. An examination is performed to determine title ownership and any other matters affecting the property title and use of that property. Items that may affect a title include easements, restrictions, rights of way and judgment liens.
The coverage provided by a title policy is long lived. The mortgage holder continues to be protected upon foreclosure of the insured mortgage or deed of trust. The owner of real estate is insured for as long as he or she owns the property, is the holder of a purchase money mortgage or deed of trust secured by the property or is liable under the warranties included in his or her deed to convey the property.