The Title Process:
1. Title Search and Examination
When buying a home, prospective homebuyers or their real estate professionals consult a title company or agent. Highly trained title professionals conduct a search and examination of title-related records to find and isolate issues that present risks to the homebuyers. As these public records are generally classified by owner name and not by property, finding pertinent information can be very tedious. Title companies invest hundreds of millions of dollars to duplicate records and file them by property in huge title databases to make the process more efficient.
2. Curative Actions
During the title search and examination, title defects are found in more than one out of three residential real estate transactions. These defects are remedied by title professionals as a matter or course - a process that can be difficult, as well as costly. Homebuyers are often unaware that this important work is being done behind the scenes to protect their interests. The corrective work performed by title professionals also helps to uphold the integrity of the land records upon which our property registration system is built.
3. Settlement and/or Closing Services
The title professional also conducts the settlement and/or closing. For most transactions, the process requires more than 100 very time consuming steps, including the following:
The Title Insurance Policy
When a property's title is determined to be in satisfactory condition, the transaction can close and a policy of title insurance is issued. This policy insures the title professional's service, and is vital protection again certain title issues that are undiscoverable from public records, such as forgery, fraud, lack of capacity in prior transactions, and more.
Two kinds of residential title insurance are necessary: