INDEPENDENCE TITLE

Description of Work: Title Services

Description of Work: These are the basic duties/responsibilities of a Title Company: 1) Title abstract: They research the title to the property through a title abstract, which provides a history of the property and its ownership. It is their job to examine the title and clear any liens or claims on the property so that the new buyer receives clear and marketable title to their new property. 2) Survey: Most lenders require a survey, or house location drawing of the property. They may order a survey, with the buyer’s authorization, and review for any potential problems. Should any issues arise on the survey, they notify the real estate agent, lender and the new buyer immediately. 3) Property taxes: They verify with the local or state taxing authority that the property taxes have been paid. On the HUD-1 Settlement statement, they prorate the amounts based on the billing period and the settlement date. 4) Title insurance policy: They prepare the insurance commitment for the lender’s title insurance policy and issue both owner’s and lender’s coverage. There are two types of Title Insurance: Lender’s, which is required by the mortgage company, and protects the lender’s investment in the property; and Owner’s, which may be purchased at settlement for the benefit of the new owner. The insurance policy provides protection from financial loss as well as payment of legal costs necessary to clear such claims. 5) Loan documents for closing: They coordinate with the mortgage lender to receive the loan documents for closing. They review all forms and comply with the lender requirements for closing. With these documents, they are then able to complete the HUD-1 Settlement Statement. This settlement statement is one of the most important documents to sign because it details all of the costs associated with the purchase and sale of the property. They prepare the deed and other documents necessary to comply with state and federal laws. 6) Closing: At closing, all documents are explained to all parties prior to signing. Settlement lasts approximately one hour. After closing, they disburse all the monies collected at settlement and pay vendors. They may pay off and release the existing mortgages on the property and prepare the loan documents to be returned to the lender. 7) Documents recorded in courthouse: It is their responsibility to make sure all documents are properly recorded in the courthouse, such as the new deed and mortgage. They also ascertain the release of any existing liens on the property.