Title Duties:
In Anne Arundel County and all of Maryland, the title company performs many of the tasks necessary to protect the client’s best interest during a real estate transaction. I will discuss the title company duties and fees below. The buyer chooses who their title company is at around the same time the put in an offer on a home. Title companies work with both the lender and real estate agent in working towards a smooth transaction for their mutual client.
The title company orders a title search which is an examination of public records to determine and confirm a property’s legal ownership, and find out what claims or liens are on the property.
Order Location Survey (if requested)
A location survey can be ordered by the buyer through the title company. The location survey clearly outlines the property lines.
Payoff Debtors in Preparation of Closing
Occasionally, it may be necessary for the title company to facilitate the payoff of statements or tax payments prior to closing.
Coordinate Settlement Between Parties
As settlement day approaches, the title company will help coordinate the time and location of the settlement. In Maryland, many times, the settlement is done right in the offices of the title company.
Through the ordering of the title search and subsequent research, a decision to that the title is free and clear of encumbrances is called clear title.
Title insurance protects the buyer from any title problems that may arise after sale, such as liens that were missed during the title search. The title insurance company issues a report and an insurance policy in support of its findings.
As the closing agent, the title company will prepare the final ALTA statement. This statement explains the fine details of the financial part of the transaction between parties.
Act as Closing Agent at Settlement
If the title company is determined to perform closing agent duties, they will be at closing to help explain each document and make sure everyone signs each document on the correct line.
Title Fees
There are some fees associated with a title company’s services. Not all title companies charge all of these fees and not all of these fees apply to every real estate transaction. With that said, you should consider asking about the fees that may apply when shopping for your title company before purchasing your home.
- Settlement/closing fee
- Title search/abstract fee
- Title insurance premium
- Title insurance binder fee
- Location survey fee
- Courier/overnight fee
- Notary fee
- Document preparation fee, etc.
Summary & Resources
As you can see, the title company has a very important role in a real estate transaction here in Maryland. I am sure I missed a few details! If you’d like to continue your research, you may want to consider the following:
- A Guide to Title Insurance by the Maryland Insurance Administration
- The Title Insurance Consumer’s Bill of Rights by the Maryland Real Estate Commission
- Wikipedia was helpful to this article.
