As a homebuyer or seller in Kauai, you may have heard the term “title company” thrown around during the real estate process. But what exactly is a title company, and what do they do? Many people are aware of the critical role title companies play in the buying and selling of real estate. In this guide, we’ll cover seven important things you need to know about title companies to help you navigate the buying or selling process with ease.
- Title Companies Conduct Title Searches
One of the primary functions of a title company is to conduct a title search on the property in question. This involves researching public records to ensure that the property’s title is clear and can be legally transferred to the buyer. During the title search, the title company will look for any liens, encumbrances, or other issues that could affect the property’s ownership.
- Title Companies Provide Title Insurance
To protect buyers and sellers from any unforeseen issues with the property’s title, title companies also provide title insurance. Title insurance is a one-time fee paid by the buyer or seller that protects them from any claims or losses that may arise due to issues with the property’s title. This can include things like hidden liens, forgeries, or mistakes in the public records.
- Title Companies Act as Escrow Agents
In many Kauai real estate transactions, the title company also acts as an escrow agent. This means that they hold onto the buyer’s earnest money deposit and any other funds related to the transaction until closing. Once the transaction is complete, the title company will distribute the funds as necessary.
- Title Companies Coordinate the Closing
The title company is also responsible for coordinating the closing of the transaction. This involves scheduling a time and location for both the buyer and seller to sign the necessary paperwork, as well as ensuring that all necessary parties are present. The title company will also facilitate the transfer of funds and the recording of the deed with the appropriate government agency.
- Title Companies Offer Closing Protection Letters
To protect buyers and sellers from any issues that may arise during the closing process, many title companies also offer closing protection letters. These letters provide additional protection to the parties involved in the transaction in the event that the title company makes an error or commits fraud during the closing process.
- Title Companies Can Help Resolve Title Issues
If any issues with the property’s title do arise, the title company can help to resolve them. This may involve working with the seller to clear up any outstanding liens or encumbrances, or working with the buyer to address any issues with the title insurance policy. In some cases, the title company may also provide legal support to help resolve any disputes related to the property’s ownership.
- Title Companies Can Offer Additional Services
In addition to their core services, many title companies also offer additional services to buyers and sellers. This may include things like home warranties, notary services, or even assistance with moving and storage. Be sure to ask your title company about any additional services they offer that may be useful to you during the real estate process.
A title company is a key player in the real estate process, helping to ensure that the transfer of ownership is legal and smooth for all parties involved. By understanding the role of title companies and the services they provide, you can approach your real estate transaction with confidence and peace of mind. Are you ready to buy or sell a property in Kauai? Find out how the team at Jeff Nemeth Real Estate can help you! 808-634-4518