At some point when you buy a Tulsa home, you will use a title company. Whether new construction, an existing home, or an investment property, their services become a necessary part of your real estate transaction. But what exactly is their role in the process?
How a Title Company Factors Into a Tulsa Home Sale
What Do They Do?
First of all, they usually act as the escrow agent. This party holds your earnest money. In Oklahoma, the title company handles all of the closing documents as well as the distribution of all funds to the various parties involved in the transaction. In fact, you sign your final paperwork at the title company’s offices.
Next, they conduct a search of the title history in regards to the Tulsa home in question. In this search, they look for anyone with legal ties to the property. This includes the seller and any other co-owners or past owners of the property. They also search for judgments made against the property, liens, easement restrictions, and any issues that may hinder a clean transfer of ownership. They present their findings in a title report. Any issues found must be resolved before the title can be transferred into the buyer’s name at closing.
Finally, they issue title insurance. This protects you and your lender from financial loss if someone comes in at a later date to claim ownership of the property.
Types of Title Insurance
Basically, there are two types of title insurance: lender’s title insurance and owner’s title insurance. Lender’s insurance protects the lender in case someone tries to claim ownership of the property after transfer to the buyer. Most lenders require this as part of the sale process. Owner’s insurance protects the new owner (you) in case an ownership dispute erupts after title transfer. It is a good idea to purchase owner’s title insurance to protect yourself.
Shopping for Title Insurance
You can either work with a company recommended by your real estate agent or you can shop around for your own title company. Some areas closely regulate insurance rates. Others allow open competition. If that is the case in your area, you might save as much as $500 by shopping around. Talk to your agent to see what they recommend.
Lori Cain, REALTOR®, Serving Midtown and the greater Tulsa, OK area. Call 918-852-5036.
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