How important is a title company’s role in a real estate transaction?

Selling your home the traditional way is highly stressful and challenging, calling for a homeowner commitment over six weeks or longer. Whenever a new listing arrives on the MLS, you can be sure there’s an interesting story behind it – sometimes sad and frequently with a sense of optimism. It’s pretty standard for lifestyle events to motivate one to sell. Some examples are as follows:

  • Inheriting a family property
  • Moving to another city
  • Losing one’s job
  • An unexpected disability
  • Mortgage payments falling into arrears
  • Delinquent tenants not paying rent
  • Empty nesters downsizing
  • Young families upsizing
  • Divorce

When a realtor is in the mix, they insist on a home being show-ready. As a seller, they expect you to address curb appeal, room decluttering, minor and sometimes significant fixups. Also, there’s pressure to stage the home to put your best foot forward.  Orchestrating shows to engage prospects becomes a necessary grind. It doesn’t stop there because the home inspection is still to come and possibly a disruption if the lenders’ appraisers downgrade the offer price.

A compelling way to skip all the above hullabaloo is to look at transacting with a home cash buyer like Home Buyers Birmingham in Alabama.

  • You can cut down the selling cycle by eighty percent to around seven days, a minimal invasion of your time.
  • Moreover, you save around six percent on agents’ fees and other closing costs for an all-cash reasonable offer in bottom-line terms.
  • Suppose you want fast liquidity to smooth out a single-family investment portfolio? In that case, Home Buyers Birmingham or similar type companies are just what the doctor ordered.

Here’s the thing: No matter whether you’re selling to a realtor’s customer traditionally or a home cash buyer, there can be no progress without a final signed agreement. From there, it’s up to a title company to approve the purchase by issuing the new owner with a title insurance policy. It’s a critical phase, and there’s no way sellers or buyers can dodge it.

What’s a title company, and why is it important?

The title company aims to pick up all the separate pieces once the parties sign off on the contract. They clear out numerous potential obstacles that may connect to the real estate in the form of judgments, liens, HOA fees owing, property tax, and settling the mortgage. Buyers and sellers may take it for granted, but the deal closing on time revolves around:

  1. Ordering a title search.
  2. Executing it to detect the gremlins in dark nooks and crannies.
  3. Resolving the problems that emerge resolutely and quickly

The title company’s experts take their responsibility seriously, not resting until they structure a closing statement and lodge the relevant documents in the deeds office. In addition, they must oversee signature notarization and bring all the parties to the closing (remotely or physically) to finalize matters. With a professional, experienced title company at the helm, the closing phase moves like clockwork. Incompetence in this arena can turn into a nightmare and all-around frustration.  Fundamentally, the new owners expect to occupy the premises and use them as dictated by the zoning from day one of occupation.

The title company’s fees tell us a lot about what they do.

Fees are a one-time payment that gets settled on the closing day and itemized in the closing statement as follows:

  • The title search
  • Endorsements
  • Recordings
  • Everything that’s on the list to issue a title insurance policy.

There’s no need to shop this service because most of the costs are regulated, irrespective of the title entity selected. Also, county regulators give guidelines on the title costs allocated to the seller’s and buyer’s accounts, respectively. Wherever you stand in a real estate transaction, you can refer to easily accessible Alabama online title fee calculators to spell things out, thus removing any confusion within minutes.

With price considerations on a level playing field, the value of a title company rests entirely in its expertise, namely – its team’s ability to:

  • Scrutinize the activities around the title that are irregular and possibly – in extreme cases – fraudulent.
  • Be the guiding light to many parties – buyers, sellers, lenders, realtors, surveyors, notaries, and inspectors – interacting fast and furiously to meet the closing deadline.

Dissecting title insurance down to the nuts and bolts.

Generally, the realtor, lawyer, lender, or home cash buyer promotes one title company or another. It’s often the case that the promoter has had excellent service in the past. Nonetheless, do your due diligence by reviewing the title company’s client testimonials. Make sure that they align with your expectations as a seller or a buyer. Reputable home cash buyer professionals like Home Buyers Birmingham know the ins and outs of title insurance procedures. The sellers transacting with them should expect nothing but five-star title insurance service.

Talking more specifically, the issued title insurance policy is the culmination of all the initiatives shown above doing their job. The policy guarantees the new owners:

  • Peace of mind knowing that the policy legally and financially protects them from any attack on the title based on title errors in the past.
  • They can rest assured that the title company will foot all legal bills and costs arising from court actions should they occur.

Why title insurance is an immense home seller support in cash deals

Suppose you are a seller motivated to erase liens mounting up, property tax unpaid, and mortgage interest arrears. Perhaps you are stuck with bad tenant leases standing in the way of a clean sale? Possibly your HOA has a special assessment out there that you can’t find the cash for? Negotiating with a home cash buyer is a viable way out of these potholes without sweating it too much or going into deeper debt.

Traditional realtors generally leave you to your own devices on lien cleansing. Conversely, a company like Home Buyers Birmingham collaborates with the title company to meet with lien holders. Yes, you have to pay them on closing, but it can be a massive windfall at cents-in-the-dollar. The Home Buyers Birmingham team is also skilled at addressing sticky leasing situations by taking them over or deriving other satisfactory solutions. As the seller, the title insurance releases you from any further obligation. When you work with professionals to speed things up, you can depend on Home Buyers Birmingham to connect to a title company that will help iron out all the wrinkles, leaving you with a nice sum of cash – even in severely problematic real estate situations.

Home Buyers Birmingham
1821 11th Avenue South Suite #55331
Birmingham, Alabama 35205

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How important is a title company’s role in a real estate transaction?
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