Buying a home can feel like a long, late night infomercial. You decided to buy a home. Great! Find an agent. But wait, there’s more! Find a lender to get pre approved. And once you find your home… Great! There’s more! Hire a home inspector so you won’t have any surprises down the road. But wait, there’s more! Now you need a title company for title insurance and to transfer ownership. But wait, there’s more! You have to sign documents that amount to more pages to read than the novel War and Peace! Phew! You haven’t even loaded the moving truck yet and the legalities alone have rendered you exhausted in the buying and selling process in Richmond, CA.
Not only does it feel like an infomercial, but it also feels like one of those revolving doors at fancy hotels or office buildings. You’re just going with the flow until you get flung out or until someone pushes you out. When you’ve been going around and around viewing open houses, making offers, checking in with the bank, and more, by time the title company comes into the picture you just nod and smile. You know it’s part of the process but what does a title company really do?!?!
Let’s break this down first: once you’ve found your home, made an offer, your offer is accepted, loan papers are signed, and the appraisal comes back favorable, this tends to be the time in the transaction where the title company enters the scene in the buying and selling process in Richmond, CA. (Yep, at this point you’re so close to the finish line that you can almost taste victory!).
What is a home title?
A home title is the history of ownership of who owned the property and is an essential piece in the buying and selling process in Richmond, CA. According to agent finder website Homelight, “A deed is the physical document that passes those ownership rights from seller to buyer and is usually recorded with the courthouse or assessor’s office. The title is someone’s right to legal ownership and use of a property, including the right to sell it.”
At this point in the process, the title company is a third party that represents both parties in the buying and selling process in Richmond, CA. The title company makes sure there aren’t any liens against the property. For example, let’s say the person selling the home received the home when both parents passed away. No big deal, right? But what if the parents left the home to the occupant and his two brothers? You don’t want the brothers knocking at your door demanding their share of the payment. The title company and the title insurance you purchase will help you avoid liability in any of these types of situations.
So what other tasks does a title company do in the buying and selling process in Richmond, CA?
Well, the title company will review the “chain of title” looking at the past history of everyone who owned the home. Let’s say that a previous owner never paid the landscaping company that did $25,000 worth of work on the property. You don’t want the landscaper to call you demanding that his bill be paid. Or maybe a former owner didn’t pay property taxes and has a lien on the home from the government. All of these issues will be brought to light. So what do you do? Well, you can work with your real estate agent to have the owners pay off the liens or even reduce the price of the home. Each situation is different, so definitely discuss your options with your real estate professional in the buying and selling process in Richmond, CA.
Next, your title company conducts a survey to make sure your home records match up with reality. When you and the lender agree that everything looks good, you get title insurance. The seller tends to pay for it on behalf of the buyer upon closing and the buyer pays for it on behalf of the lender. If anything comes up down the road, now you’re protected! This is a one time payment and lasts for as long as you own the property.
If you’re married, both names will tend to go on the title. If you’re not married, then you are the sole owner. In other situations, discuss your partnership with your title company to ensure that everything is set up legally according to your specifications. Once you close, the title is then transferred to you!
How do you pick a good title company in the buying and selling process in Richmond, CA?
Many times, your real estate agent will recommend a good title company to use. However, you are not required to go with the company your agent suggests. You can search online for reviews or other recommendations. According to the California Department of Insurance, “The person who pays for the policy selects the title insurance company. Be sure that any title company you select meets your standards and those of your lender. Ultimately, the choice of which title insurance company to select is yours. You may want to contact more than one title insurer or underwritten title company to compare costs and services.”
How much does title insurance cost in the buying and selling process in Richmond, CA?
Realtor.com explains that, “The average cost of title insurance is around $1,000 per policy, but that amount varies widely from state to state and depends on the price of your home.”
Do you have questions about the home selling or buying process? Call the Rick Fuller Team today! We’ll partner with you every step of the way. From prepping your current home to put on the market to finding your perfect new home to connecting you with reputable lenders and title companies, we live where you live and are here to help! Call us today. We’re excited to give you an experience you’d be excited to tell a friend about!