How do we ensure the seller is the true owner of the property?

We carefully ensure the seller is the property’s valid owner through a comprehensive title search and examination process. Here’s an overview of how this is done:

1. Public Records Search: The title company thoroughly searches public records, including county courthouse records and other relevant government offices. They look for documents related to the property’s history, such as deeds, mortgages, liens, judgments, tax records, and other encumbrances that may affect the title.
2. Chain of Title Verification: The title company examines the chain of title, a historical record of property ownership transfers, to verify that each transfer was executed correctly and recorded. This process ensures no gaps or breaks in the ownership history could indicate potential ownership disputes.
3. Title Abstract or Report: The title company creates a title abstract or report based on the information gathered from the public records search. This document summarizes the property’s ownership history, liens or encumbrances, and other relevant title-related information.
4. Title Examination: The title company’s experienced title examiners carefully review the title abstract or report to identify any title defects or issues that must be addressed before the property can be sold. This includes verifying the seller’s ownership rights and ensuring there are no undisclosed parties with a claim to the property.
5. Resolving Title Issues: If any title issues are discovered during the examination process, the title company works with the seller and any other involved parties to resolve these issues. This may involve obtaining necessary documents or releasing liens and encumbrances.
6. Title Insurance: The title company offers title insurance policies to provide additional protection to the buyer and lender. These policies safeguard against undiscovered title defects or ownership disputes arising after selling the property.
7. Closing: Once the title company is satisfied that the seller has clear and marketable property ownership, they proceed with closing. All necessary documents are signed during the closing, and funds are disbursed to complete the transaction.

By conducting a diligent and meticulous title search and examination, the title company ensures that the seller has legitimate ownership of the property and that the buyer receives a clear and marketable title, free from any undisclosed claims or defects. This process helps provide confidence and peace of mind to all parties involved in the real estate transaction.

How do we work with you to satisfy any liens?

When a title search reveals the presence of liens on a property, it becomes the responsibility of the title company to work with the parties involved to satisfy those liens before the real estate transaction can proceed smoothly. Here’s an overview of how a title company typically handles liens:

1. Identification of Liens: During the title search and examination process, the title company identifies any outstanding liens or encumbrances on the property’s title. Liens can include mortgages, tax liens, mechanics’ liens, judgment liens, or any other claims against the property.
2. Verification of Liens: The title company verifies the legitimacy and accuracy of the identified liens to ensure they are valid and related to the property in question.
3. Communication with Lienholders: Once the liens are confirmed, the title company will contact the lienholders to obtain the necessary payoff or satisfaction information. They will request payoff statements or release documents from the lienholders detailing the amount required to clear the liens.
4. Escrow and Fund Disbursement: The title company acts as an escrow agent, holding the funds from the buyer in a secure account. If there are liens to be satisfied, the title company uses the funds held in escrow to pay off the liens on behalf of the seller during the closing process.
5. Lien Release: After the lienholders receive the payment, they issue lien release or satisfaction documents, indicating that the liens have been cleared and the property’s title is free of those encumbrances.
6. Recordation: The title company ensures that the lien release or satisfaction documents are recorded in the appropriate government office (usually the county recorder’s office). Recording these documents in the public records is crucial to prove that the liens have been cleared from the property’s title.
7. Clear Title: Once all liens have been satisfied and the title is clear, the title company proceeds with the closing, and the property is transferred to the new owner.

By efficiently handling the lien satisfaction process, the title company helps ensure the buyer receives property with a clear and marketable title, free from any financial encumbrances. This process also protects the seller from potential legal issues related to unresolved liens after the property sale.