Your title insurance agency in AZ will play several key roles in common real estate transactions. They generally act as the combined agent of the insurance company, the buyer, the seller, and any other parties related to a real estate transaction, such as mortgage lenders.
The title company reviews title, issues insurance policies, facilitates closings, and files and records paperwork. Below we’ll discuss each of these in greater detail.
Closing Agent: A title insurance agency in AZ is often the closing agent for real estate transactions. This means the title company is an agent of each party to the transaction. In this role, the title company obtains signatures on all of the closing documents, and the title company also receives and distributes payments related to the conveyance transaction. After the parties have signed all the documents, the title company will record documents that need to be recorded, such as deeds and mortgages, in the local county land records office.
Escrow Officer: A title insurance agency also commonly acts as escrow officers for real estate transactions. An escrow officer holds documents or money as a part of the transaction and according to the directions of the parties.
For example, the buyer of real estate will give the title company the money for the purchase price, while the seller will give the title company a signed deed to the property. The title company, acting as escrow officer, only releases the deed and the money according to the written instructions of the buyer and seller.
Title Review: Your title insurance agency in AZ must have sophisticated real estate title search and review departments. These departments review the public records relating to real estate, in order to inform all interested parties of the status and condition of title to the subject property.
They generally provide this information to each of the parties in the form of a preliminary title report, or commitment for title insurance. Title companies also provide title research information related to foreclosures and other types of legal action involving real property. This review either confirms the ownership of the property or identifies any murky information that may call into question the true owner.
Insurance Policy Provider: A title insurance agency typically issues policies of title insurance on behalf of title insurance companies. In most cases, the title company that issues the policy is not actually the insurance company. Instead, the title company acts as an independent agent of the insurance company and simply receives a commission for issuing the title policy.
The actual premium goes to the insurance company, and the insurance company bears the risk of any loss under the policy. The title company merely facilitates the paperwork for issuing the insurance policy.
If you are going to be a party in any type of real estate transaction – don’t take any chances – put your trust in an expert title insurance agency in AZ. Call our office today to schedule a consultation so we can answer your questions and provide you with the best options.