Welcome to Residential Title and Escrow’s brand new blog! Every week, we will be sharing informative and interesting articles related to title services, the real estate market, and other topics relevant to you. This week we are going to answer some of the questions we hear most frequently to let you know why title services are so important for a smooth closing process. So cozy up and read on to learn everything you need to know about title services and don’t forget to check back next week for our next article!
A Q&A on the Importance of Title Services from Residential Title and Escrow
At Residential Title and Escrow, we draw on over 30 years of experience to offer our customers top-notch service and simple, hassle-free closings. We close on over $1 billion in title insurance every year, ensuring that we have an intimate understanding of the laws and regulations that affect the title services industry in Maryland and throughout the mid-Atlantic region. Today, we are going to offer an overview of title services so that when you purchase your next home, you will have the knowledge you need to choose the right title service company to work with.
Why should I use a title company?
As you are already surely aware, purchasing a home is one of the biggest investments you will make in your lifetime. Many people have saved for years to realize their dreams of homeownership so you want to be sure that your investment is going to prove to be worthwhile. Unfortunately, there are many problems that can arise along the way to closing so it is not so simple as putting an offer in on a house, having it accepted, and then paying and getting the keys. A title company will help to identify issues that could lead to problems at closing or even prevent you from owning the property free and clear later on down the line. By working with an experienced title company, you will be able to rest assured that your ownership of your dream home will not be jeopardized by title problems.
What are title services?
Title services encompass a broad range of processes that are in place to navigate the transfer of property ownership. This includes title searches, examination, and insurance, as well as escrow services, closing cost estimations, and residential closing services. A trusted title company will be able to ensure that your closing process proceeds smoothly and with no unexpected hassles.
Why is it important to do a title search? Why can’t I just do it myself?
A title search is one of the most crucial pieces of investigation that must be completed prior to closing. During a title search, your title company will go through public records to examine risks and threats to your potential ownership. Your title insurance company will examine liens, taxes, judgments, utility assessments, and other documents that may have an impact on your claim to ownership. In certain cases, your title company may also examine issues regarding real property such as zoning, improvement type, and surveys. During this examination process, your title company will be able to identify any potential risks that could eventually jeopardize your claim to ownership. The risks may include liens, probate problems, unreleased mortgages, forgery, and undisclosed easements and use restrictions. There are many possible problems that can arise which is why it is so important to work with an experienced and trustworthy title company that will examine all potential sources of issues.
While these problems can be found by searching public record, inexperienced homeowners should not attempt to undertake this complex process. For one thing, individual homeowners will not know what to look out for as there are many small details that can cause eventual problems. Another important consideration is that when an experienced title professional finds issue, they are able to take steps to remedy or work around the problem. Title problems are incredibly common and arise in about one-third of all title searches. However, most of the time the buyer will never know that there was ever an issue because their title professional has worked behind the scenes to have the problem resolved before going to closing.
What is title insurance?
While it may seem logical that after you purchase a home it should be yours free and clear, this is not always the case. There are many ways in which ownership can be convoluted and you may have fewer rights than you think. Title insurance protects you from threats to your ownership of your property by covering the legal fees that you would incur if an issue were to arise. Examples of the types of problems that can be encountered include previous unknown debts and obligations that you never agreed to which could otherwise jeopardize your ability to hold the title—and thus ownership of– your home. Title insurance adds an extra layer of peace of mind to ensure that you’ll never have to worry about a claim against your ownership of your property.
What is escrow? What are escrow services?
Escrow is essentially a holding place for important documents and funds that are necessary for your home purchase which is established by a third party to ensure that they are not dispersed until certain conditions have been met. Escrow is established to protect both buyers and sellers. Before the property sale, the terms and conditions are agreed to for the transfer of ownership of the property and these are given to a third party entity who acts as the escrow holder. Escrow is most often held by your title company but can also be established by the buyer or seller’s real estate broker.
Escrow services refer to the responsibilities of your escrow holder. These responsibilities include paying all bills that they are authorized to manage, managing funds and documents as specified in the terms and conditions established, and closing the escrow account and distributing funds accordingly once all conditions have been met.
When choosing a title company, what should I look for?
One of the most important things to look for when choosing a title company is their experience. Has your title company been around long enough to establish a reputation or are they a fly-by-night business? You will greatly benefit from working with a company that has an intimate knowledge of the local, state, and federal regulations that may affect your closing process.
You should also be sure to work with a company that values their customers and will be willing to guide you through the closing process. Title and escrow services are complex and many homeowners do not understand the ins and outs of these processes. Working with a title company that will provide you with peace of mind throughout the process is crucial. Do a little research into a company before deciding to go with them: Do they have positive reviews from clients who have worked with them in the past? Have they processed enough closings to make you feel comfortable that you will be in good hands? If a representative shies away from any of your questions this should be an immediate red flag! A reputable company will be happy to ease your mind by providing testimonials, referrals, and examples of why you should choose them for your title service needs.
Why should I choose to work with Residential Title and Escrow?
Residential Title and Escrow is committed to your satisfaction. We close on over $1 billion in title insurance for both residential and commercial properties so we know the ins and outs of the business. We also have an extensive understanding of the laws and regulations that could potentially affect your ability to close on the home of your dreams. We are a woman-owned business and are certified as a Women’s Business Enterprise (WBE/MBE) in Baltimore City. We are headquartered in Owings Mills, Maryland but are proud to serve clients throughout Harford and Anne Arundel counties as well as Sussex County, Delaware. We are also licensed in Washington, DC, West Virginia, and Pennsylvania in addition to Maryland and Delaware.
We have built our reputation on trust and our staff possesses a diversity of experience that allows us to tackle even the most complicated settlements. We are proud to offer dedicated and friendly customer service so that you will feel like you are in good hands every step of the way. We have built a reputation for providing personal, professional, and affordable service to each and every one of our clients. Contact us today to find out how we can help ensure your closing process goes through smoothly with no hassles.
Residential Title & Escrow
At Residential Title & Escrow, we bring peace of mind to the settlement table. If you are searching for a title company to help you through the closing process, contact us today! You can also fill out our simple online title request form and one of our knowledgeable representatives will get in touch with you promptly. Be sure to follow us on Facebook, Twitter, Pinterest, and Google+ to stay up to date on news, and upcoming events as well as staff and client spotlights!