Larry LaGrotta
Larry LaGrotta
Title Companies Involvement in Real Estate?

The role of the title company is to coordinate the interests of all parties to a real estate transaction including the buyers, sellers, mortgage lender, and the Realtors, and to make sure all requirements for settlement are fully satisfied.  After the sales contract is signed by all parites, it is sent to the title company to begin the title process.

The first step is to research the title to the property through a title abstract.  The title abstract provides a history of the property and its ownership.  It will also identify any liens, defects or encumbrances on title.  It is the title company's our job to examine the title and clear any liens or claims on the property so that the new buyer receives clear and marketable title to their new property.

Most lenders require a house location drawing of the property, also referred to as a survey.  The title company will review the survey for any potential problems.  Should any issues arise on the survey, they will notify the Realtor, lender and the new buyer immediately.  The survey will be given to the buyer at settlement.

The title company will also verify with the local or state taxing authority that the property taxes have been paid.  They will also check with the water company and the Homeowners Association or Condominium to confirm that all payments are current.  On the HUD-1 Settlement Statement, they will prorate the amounts based on the billing period and the settlement date.

Next, they prepare the insurance commitment for the lender’s Title Insurance Policy and issue both owner’s and lender’s coverage.  There are two types of title insuranceLenders, which is required by the mortgage company, and protects the lender’s investment in the property; and Owners, which may be purchased at settlement for the benefit of the new owner.  It is strongly recommended that all buyers receive an owner’s title insurance policy which protects them against any unforeseen claims, hidden risks, or fraud against the property.  The insurance policy provides protection from financial loss as well as payment of legal costs necessary to clear such claims.  For more information on title insurance, please contact the title company below.

Title companies also coordinate with the mortgage lender to receive the loan documents for closing.  Once received, they review all forms and comply with the lender requirements for closing.  With these documents, they are then able to complete the HUD-1 Settlement Statement.  This settlement statement is one of the most important documents to sign, and it will be reviewed in detail at closing.  Title company's also prepare the Deed and other documents necessary to comply with State and Federal laws.

At closing, all documents will be explained to all parties prior to signing.  Settlement will last approximately one hour.  They will take plenty of time to go over the documents to ensure everyone is comfortable with the documents prior to signing and answer any questions that arise.  After closing, title companies disburse all the monies collected at settlement and pay the vendors such as the termite company and surveyor.  They also pay off and release the existing mortgages on the property and prepare the loan documents for return to the lender.

And finally, it is the title company's responsibility to make sure all documents are properly recorded at the courthouse, such as the new Deed, mortgage and release of any existing liens on the property. 

Title companies play such an important role in the purchase and sale of a home.  Be sure to contact a title company if you have any questions concerning the transafer of ownership.

Daytona BeachOrmond BeachDaytona Beach Shores

Venture Development Realty, Inc. - Team Castle
100 Plantation Bay Drive • Ormond Beach, FL 32174
Larry LaGrotta • Broker-Associate
CELL: (386) 212-1202
OFFICE: (386) 236-4212
FAX: (386) 437-0100