When it comes to residential real estate transactions in Florida, the role of a title company is vital, yet many people still have a lot of questions about what title companies do and how they protect real estate investors. In this post, we’ll break down the role and responsibilities of title companies and answer your questions about the services they provide.
Title Company Responsibilities in Miami Real Estate Closings
While some may wonder whether they really need to use a title company to complete a real estate transaction (we strongly advocate that you do), the better question to be asking is how can a title company help protect you from risk?
As one of the biggest investments many homeowners make, real estate can leave buyers susceptible to past ownership issues or potentially even the loss of their home. This can amount to a lot of money – and memories – stripped from your hands. Here are a few specific ways title companies protect you from risk.
- Ensures a clean title – Examining the title’s record is essential as it can reveal if there are any claims, defects, or other rights or burdens already on the property. If past issues aren’t cleared, you could end up dealing with the consequences. The cost of a title search in Florida is minimal yet offers maximum peace of mind.
- Offers title insurance – Title companies in Florida also offer title insurance to protect both the buyer and the lender against any potential claims or defects in the title. When you buy title insurance, you’re protected from legal claims against your property and any “hidden hazards” that may not have been revealed during the title search. You can read more about title insurance and its cost in Florida here.
- Provides escrow services – During a residential real estate closing, the title company often acts as an impartial third party holding the earnest money deposit and other funds in escrow. They ensure that the funds are securely held and disbursed according to the terms of the purchase agreement. The title company also coordinates with the lender, collects necessary documents and ensures all closing conditions are met before the disbursement of funds.
- Coordinates your closing – Title companies, which may be chosen by the buyer or seller in Florida, work closely with all parties involved to coordinate a seamless closing experience. They prepare the closing documents, facilitate the signing of legal documents, and oversee the transfer of funds and ownership. They also ensure that all necessary legal requirements, including recording the deed and mortgage, are met.
- Resolves any issues – If any title issues or concerns arise during the closing process, the title company works diligently to resolve them. Their expertise and knowledge of Florida’s real estate laws and regulations are instrumental in resolving issues efficiently.
Title companies play a crucial part in ensuring that the property’s title is clear and that the transfer of ownership during the closing process is smooth and legally sound. To learn more about how a title company like ours at ADS Title Services, Inc. protects your assets and interests, please contact us today to request a free consultation.