The title process in real estate is a set of procedures performed to ensure that the property in question has a clear title or is free and clear of any legal claims.
The title process is vital to real estate transactions because it guarantees that the person selling the property has the right to do so. It also gives the buyer peace of mind that they will not have to deal with any legal claims against the property after closing.
Below is a detailed description of the title process.
Once an agreement is reached, the agreement goes to the title company. The title company is a neutral third party that ensures the terms of the agreement are followed and performs functions to ensure the transfer of clear title to the new property owners.
The title company conducts various searches on the property to discover any issues with the title involving a search of public records to find out who holds the current title and if there are any title defects. The goal is to ensure there are no liens on the property or defects before closing.
If anything comes up during the search, like an outstanding lien or other defects, the title company will resolve them before the close of escrow.
Following those corrections, the title company declares the property title “marketable” or “insurable.”
Marketable properties are free of all liens and are deemed “clear.” The property is insurable when the listed defects have been cleared or deemed harmless.
You’ll sign all the paperwork necessary to transfer ownership from the seller to you at the closing. Most buyers also buy an owner’s title insurance to protect their investment in case of problems with the title after they close escrow.
Once the sale is complete, the title company sends the title to the county recorder’s office, which records the title documents for the public record. A recorded title puts ownership information into the public record and is accessible to everyone. The title recording will also assist with any future disputes concerning ownership.
All Funds Disbursed
Once the contractual requirements have been satisfied, the lender funds the loan, and the funds get disbursed to all parties.
Obtaining a title to the property you’re buying can be very confusing. The information and paperwork provided by your lender may seem confusing. Still, it is all part of the process to determine the current status of any liens on the property.
By understanding the title process in real estate and getting everything done on time, your closing will go off without a hitch.
If you need a title company for your sale, please consider using The Title Group of Tennessee. If you are planning to list your property for sale in the Knoxville area, we can help. Check out our site for more information about what we do, and feel free to call us with any questions or concerns along the way.
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