In the US and this case as an example in Florida, buying and selling property is mostly through what is called a title company or title insurance. Real estate transactions in Florida can be made privately with the aid and representation of attorneys and title companies. There are several ways to carry out a transaction but not necessarily in a specific order. A lawyer can make all the legal transaction, but this will not guarantee property title should a problem arise in the future with the right to property. Countless situations may arise with the ownership of property that you never know in advance that may arise. But it will be helpful if you will be forewarned.
Normally, real estate sales are between individuals, most often represented by their real estate agents and other professionals such as Florida title insurance attorney and accountants and support from a Title Company to carry out the transaction.
The three common functions of a title company
Search and analysis of the title
This research has to be taken before a company can issue a title insurance commitment to the property. With this step, these companies will study the history and tenure of the title. Based on their research they will decide whether they can issue a title insurance to the property. It has a similar principle to buying medical insurance; the company makes its assessment of the candidate before granting it.
Most Florida title insurance companies also offer escrow service. With this, the company will carry out the closing of the transaction, and in particular, will fulfill all the necessary documents to carry out the sale and make the required payments by the role of trustee. Your Florida title insurance attorney will make sure that you will be informed each step of the way. This gives the transaction a lot of transparency.
Issue title insurance
Finally, they will issue title insurance property to the buyer and the financial institution that guarantees the property title in the transaction. First, they committed and now issue title insurance property to the buyers or the bank in case you acquire a mortgage loan.
As you can read, the title company performs several tasks during the transaction that guarantees clear title to the purchaser and thus be confident that your investment is protected against any possible future problems related to the title of that property.
Who will handle the cost of the title insurance policy for the property? The custom varies per state. Sometimes this is paid by the buyer since the buyer will be the one benefited. It could also be paid by the one who is selling the property as this ensures you are selling a property with clear title. Another option is both parties could share the cost. Prices do not vary much between companies and securities that are regulated by a state commission. The main difference between each title company is the quality, knowledge of real estate law, and effectiveness of its management service.
As you may have read, it is essential to have a title insurance for the property when making any real estate purchase. This will give you the security that the title is clean and you will be protected if you have problems later. In the first place, a title company will not issue you insurance if it does not have the full assurance that you get clear title. And second, that if they came to escape a detail and you get to have problems with the title in the future, they will account for your investment. Lenders will also require you to get lender"s policy for the same reason. If you require additional details or you want to review an individual a title for a title insurance policy, get in touch with your trusted Florida title insurance attorney.