Title Services Explained

Whether you’re a licensed realtor or researching the industry, the work of a title company can be a lot to remember. At Prairie Land Title Company, we want to make it less confusing! 

Title Companies offer services to assist agents and clients through the transaction process. These services include title commitments, insurance, and title examinations. We also do settlement services, construction escrow administration, document recording, and condo conversion.

Let’s look at each of these services and see what they entail.

Title commitments:

A title commitment is also known as a title binder. This refers to the promise of a title company to issue an insurance policy for a property after closing.

Title insurance:

Title insurance is a form of indemnity insurance. This type of insurance protects lenders and homebuyers from financial loss. These unexpected losses are a result from a defect in a title to a property.

-The most common type of title insurance is lender’s title insurance. This insurance is what the borrower purchases to protect the lender.

- The other type of title insurance is owner’s title insurance. This is often paid for by the seller to protect the buyer’s equity in the property.

Title examinations:

A title examination is a close look at all public records that affect the title to the property. It involves reviewing past deeds, wills, and trusts. The goal is to make sure the clean title has passed to each new legal owner. The examiner verifies that any past mortgages, judgments, and liens are paid in full.

Closing and settlement services:

Closing and settlement services are the administrative and clerical services. These services carry out the terms of contracts affecting real estate. This includes a variety of services to ensure that the transactions are complete.

Construction escrow administration:

These are services needed when a lender is financing a construction project. Funds for the project get deposited with the title company. The title company oversees the payment of funds to contractors and material suppliers. Using a title company ensures that no mechanic’s liens on the real estate because of work performed. Contractors must submit a request for payment. The title company verifies that there are enough funds to meet those obligations. This service protects both the lender and owner during the construction project.

Document recording:

The title company is the intermediary for all parties during a house sale. They record all necessary legal documents to complete the sale of the home. Completing all work on today’s sale ensures that the next owner will not be stuck with title issues in the future.

Condo conversion:

A condominium conversion changes a rental property to a condominium form of ownership. The title company confirms there are no liens and legal ownership of the property. It’s the first step in the conversion process.

If you have any questions about how we can help you or your clients, please give us a call. We are here to help you every step of the way!