What Does a Title-Closing Company do in Ohio & Florida?
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A title company is responsible for ensuring all documents, including state tax liens and prior owner mortgages, related to the particular property are settled before executing any real estate transactions. These companies also provide a notary to prospective homeowners to oversee the closing process in Ohio and Florida. A title company can also issue title insurance to protect lenders and/or buyers if a title issue should emerge after the property is sold.
Deeds
After buying a piece of real estate, you take ownership of the title or deed of that property. Deeds are recorded at the Recorder’s Office in the relevant county, and a person does not technically own any real estate unless his name appears on the deed at the Auditor’s Office. Likewise, lenders and third parties can secure a lien on real estate; it is not possible to sell a property unless all liens on it are satisfied. Sometimes, an improperly recorded deed or lien falls through the cracks during a real estate transaction, which means the holders of unsatisfied liens still have claims on the property. Other times, a deed may change hands despite the lack of consent of one of the existing owners to make the transaction. When this happens, the non-consenting owner still has their claim to the property.
Title Search
Title companies in Ohio and Florida are third-party vendors that search for existing liens and restrictions against property, on behalf of property owners and lenders. Employees carefully look through court records to verify that there are no unsatisfied liens left on a particular property and that no lien holders still have outstanding claims. The title company also makes sure the person financing or selling the property holds the title and can legally sell the building or otherwise secure a lien on it. After checking the court records, the title company drafts a Commitment for Title Insurance or Limited Lien Search, depending upon your needs, that states whether there is clear title for the property in question. The transaction cannot proceed if there are issues.
Closing
Title agents oversee all parts of a real estate transaction including the final closing. For these transactions, the agent is a neutral party that represents everyone at the table. In most cases, closing agents are notaries licensed by the state to legally witness the buyer's, seller's, and borrower's signatures. The agent also takes care of exchanging funds between all parties. After closing, the title agent must then transfer and record the deed, mortgage, and all other necessary documents at the Auditor and Recorder’s Office in the public records.
Title Insurance
Most title-closing companies in Ohio and Florida also sell title insurance policies. These policies cover buyers and property owners if a title dispute related to real estate ownership should arise after the transaction concludes. Since title companies perform title searches before every real estate transaction, there should, in theory, never be such an issue. However, it is possible to have documents misindexed or experience an unexpected complication that threatens the lender's or owner's interests can suddenly occur during a title claim. Affected parties can receive a compensation payout, up to the amount of the insurance purchased, from the title company, if liability is established. Usually, the purchase contract states who must pay for the insurance policy.