What Is A Title Company And What Does It work?

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The title company is a third party authority that works on behalf of both the lender and the buyer. You hire them to research and ensure the title of the home you’re buying a real estate. Let’s say you buy a home without having a title company on your side. Later on, you find out the seller inherited the home when his father died and actually only owns half of that property. The other half is possessed by his brother, who turns up on your doorstep claiming his 50% of the property. You can imagine what an venomous situation that would be for everyone. Here comes the role of a title company. So always remember to contact capital abstract and title coral springs in case of such chaos.

Responsibilities of capital abstract and title coral springs:

Chain Of Title

Title companies will find out what is called the “chain of title,” or the full past record of the home’s ownership. A search from a title company would have revealed the second owner and stopped the transaction before you close on the mortgage. They also look for ongoing liens, so you won’t find out the hard way a contractor never received payment for past work accomplished on the home and is now expecting payment from you, the new buyer. They’ll also make sure all property taxes are paid in full amount.

Title Research And Property Survey:

Your title company will carry out a property survey. Required to close on a home in many states, surveys ensure that the home occupies only the space mentioned in the title. It goes the other way as well; you want to know if your neighbor’s fence is actually on your holding.

When research is completed, the company provides a report known as “title abstract.” You and your lender will get a copy to review before you close on your transaction. This abstract is not your title insurance policy. This is completely a separate document you’ll get from your agent.

Title Insurance:

capital abstract and title coral springs provide two kinds of title insurance policies: one for the buyer, and the other for the lender. Because your lender has a financial interest in the real estate, title insurance shields them the same as it does to you: financially and legitimately, if someone comes forth with a claim for the property that was missed in the title search report.

usually, the seller of the home you’re buying bears for the expense for your title insurance policy, and you pay for your lender’s insurance policy. But unlike most insurance line of reasoning that require you to pay a yearly or monthly premium to keep your insurance coverage, you only have to pay title insurance once when you close on the holding. You’re then covered for as long as you possess the home.


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capital abstract and title coral springs usually manage the closing on your home. This service is called “settlement.” They appoint a signing agent or real estate attorney to review all closing documents and finalize the deed and transfer of title.


Title companies may possess, hold and manage money in escrow account, with the help of an agent. An escrow account is a savings account managed by an authorized third party – in this case your title company – which distributes payouts under certain circumstances.

Escrow accounts are common in real estate transactions because mortgage lenders wish to make sure that you have enough money for certain expenses.

All parties involved in this real estate transaction of buying a house will need to send or receive funds related to the transaction. Work closely with the agent, when you require to transfer funds, they’ll help guide you to the safest and most convenient ways.

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