With a traditional home sale, there are a variety of people involved, including banks, buyer’s and seller’s agents, appraisers, home inspectors, and one company who is often forgotten about — the title company. In this blog, we’re going to discuss what a title company does, the difference between a title and a deed, and more importantly, how to find a title company.
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How to Find a Title Company
At Legacy Investment Group, we buy houses for cash in Anne Arundel County. When you work with us, you don’t have to worry about real estate agents, appraisers, and home inspectors because we bridge the gap for homeowners who want to sell their house fast and don’t want to spend a fortune on fees. However, if we buy your house, you will need to work with a title company in order to transfer the home from your name to ours. Keep reading to learn more about how this process works and get in touch with our Anne Arundel County team with any questions.
What is a Title?
Essentially, this document is saying that you own the right to the property, which includes the home itself and the land where the home is located. This doesn’t mean, however, that you actually own the property. You simply have the right to use it, modify it, and access or modify the land.
When you sell your house, a title search is performed. This process ensures that there aren’t any complications or issues surrounding the title. Some issues that could be found include:
- State or local taxes were never paid by the previous owner.
- Work was completed by a contractor that was not paid for.
- There were undisclosed owners, heirs, or conflicting wills.
- Cases where the title has been forged.
After finalizing the purchase of your home, the title will be transferred to the new owner of the home and you no longer have any right to the home.
What is a Deed?
A deed is a collection of legal documents that are used to transfer the title from homeowner to the new owner. According to the Statute of Frauds, a deed must be a written document. The deed must be recorded in an Anne Arundel County courthouse or an assessor’s office. There are several types of deeds:
- General Warranty Deed: The buyer of the home gets protection from any prior claims or demands, and it guarantees that the property doesn’t have any liens.
- Special Warranty Deed: The buyer of the home is protected from issues surrounding the previous owner, but does not guarantee them that the property doesn’t have any liens.
- Quitclaim Deed: Also known as a non-warranty deed, this doesn’t give any protection to the new owner. This is generally only used for circumstances where the homebuyer and seller are in a professional or personal relationship.
- Special Purpose Deed: Similar to a quitclaim, this deed is being held by someone in an official position.
What is a Title Company
A title company is essentially an insurance company, but they offer a variety of services, including title searches and settlements. The company may include a team of title and escrow officers, real estate agents, or even attorneys.
Choosing a Title Company
Whether you sell your house with a traditional real estate agent, or we buy your house, you’ll need to work with a reputable title company to process these documents and finalize the details. The team at Legacy Investment Group has some suggestions, but it’s still important to do some of your own research and ask a few companies some questions before making a final decision. Here are some things to consider as you’re researching.
Legacy Investment Group can offer a recommendation for a title company if you would like one, but as we stated above, it’s important to do your own research as well. Or, you can ask friends or family who has been through the home buying or selling process to see if they would recommend the company they worked with. If you get the name of a company from a family member or friend, ask them how their experience was, did they seem professional and knowledgeable when they were answering questions? Contact a few companies and compare costs and fees.
Many title companies have attorneys who handle these processes, but it’s important to keep in mind that these attorneys are representing the company they work for, and may not be as interested in your needs. When we buy houses, we want to ensure that the current homeowner is comfortable with the process and feels that their interests are being considered. If you have any concern about this, we’ll be happy to work with you so that you do feel comfortable.
When you are transferring the title of your home, there will be a title search, which is done to determine the history and circumstances of the title. When the search is completed, all information found is gathered into a report that will be shared with the buyer, seller, and any other relevant party. Be sure to look over this report to get clarity on any issues regarding the title. Any issue, however small, needs to be resolved in order to provide a clean title.
As you’re researching title companies, ask for a list of fees that will be required throughout the process. This may include:
- Electronic filing
- Courier services
- Document preparation
- Processing tasks
- Insurance premiums
Shop around to find the best prices and a company who you feel you can trust.
Laws within the state of Maryland determine how insurance premiums are structured by the title company, and some companies adhere to these regulations more than others. To ensure that a potential company is compliant with these laws, ask if they are willing to share audit results and proof of licensing.
While transferring the title of your home and filing a deed may seem like an overwhelming process, keep in mind that this is just one of the steps that must be completed when working with a traditional real estate agent.
The team at Legacy Investment Group makes it easy and straightforward to sell your house fast. When we buy houses, there doesn’t need to be a real estate agent, appraiser, home inspector, or lender. We make cash offers that keep these middlemen out of the picture. The only thing you need to do is contact us, schedule a time for us to view your home, and we’ll make you a cash offer. If you accept the offer, you get to walk away with cash in your pocket — without having to pay any fees or commissions.