When purchasing any California real estate, there are many key players involved. As you close on your home and enter escrow, a neutral third party will ensure the transfer of all assets is smooth and all parties are happy with the result. A title company can handle escrows in California as long as the California Insurance Commission licenses them. Understanding how title companies handle escrows is crucial for buyers and sellers to navigate California's complex real estate landscape.
What is a title company?
Title companies verify property ownership, uncover existing liens or encumbrances, and ensure a clear title transfer through tools such as title searches. They act as guardians of the transaction process to satisfy the interests of all parties.
Services provided by title companies in California
Performing a title search
Neglecting a comprehensive title search could result in unpaid property taxes, HOA fees, and past home improvement bills becoming your responsibility. Due to these issues, mortgage lenders insist on conducting thorough title searches and obtaining title insurance during the mortgage underwriting process for a secure and hassle-free real estate transaction.
Title insurance policies and coverage
Title insurance is a protective measure against any future undiscovered issues. If an unexpected claim against the property or a hidden defect threatens the new owner's rightful ownership, the title insurance policy covers the costs of legal defense and protects the policyholder against financial loss.
For buyers, title insurance means their investment is well-protected, and they can enjoy ownership without worrying about potential property title disputes. Similarly, the lender's financial interests are safeguarded since title-related issues may jeopardize the mortgage. Including title insurance when purchasing property has become standard practice, a valuable safety measure ensuring a smooth and worry-free transfer of property ownership.
Document preparation and notarization
The title company gathers information from all parties and then prepares the deed. The deed legally transfers ownership from the seller to the buyer, so it must accurately reflect the property's description, the parties involved, and any specific conditions in the purchase agreement. Besides the deed, title companies prepare documents like affidavits, property tax documents, and any additional paperwork specific to the transaction's unique circumstances.
After preparing the documents, it is time to notarize them to ensure authenticity and are executed voluntarily. An employee of the title company will witness the signing of the papers by the involved parties, providing legal validity to the documents. By preparing and notarizing all essential escrow documents, title companies ensure the real estate transaction adheres to all legal requirements and regulations.
Escrow account management
The title company adheres to strict regulations and guidelines set forth by relevant authorities to safeguard the interests of both parties. The title company also monitors fulfilling contractual obligations while holding the funds in the escrow account. Once the transaction is closed, the title company disperses funds to the appropriate parties.
Benefits of using a title company for escrows in California
Since title companies conduct thorough searches, this decreases the risk of unexpected liens or claims arising after completing the transaction. If you get title insurance, there is an added layer of protection, providing peace of mind to buyers and lenders in case of any unforeseen title defects or legal disputes.
Tips for working with a title company during escrow
Choosing the right title company in California
When you enter escrow, choose your title company wisely and embrace its expertise. As you decide which title company best fits your needs, consider the company's reputation, experience, credentials, responsiveness, and fee structure.
Consumer's Title Company establishes itself as California's premier consumer title and escrow provider by prioritizing exceptional customer service. Leveraging cutting-edge technology and employing a highly skilled and ethical professional team allows Consumer’s Title Company to forge strong partnerships with clients and communities.
Their unwavering dedication to growth, locally and statewide, sets them apart from the competition. Contact Consumer's Title Company today and take the first step toward a seamless real estate experience.