Some people think that real estate agents just put up a “For Sale” sign in your yard and don’t much else, but most real estate investors know better than that. In the same way, many people think title companies just put your name on the title when you purchase a property. They do MUCH MORE than that! What should every investor know about the work of a real estate title company Philadelphia? In Pennsylvania you cannot complete your real estate purchase without the work of a title company.
What Does A Real Estate Title Company Philadelphia Actually Do?
This will surprise you, but it’s true: in almost all real estate transactions, a title company representative will discover title issues that must be cleared up in order to transfer ownership of the house from the seller to the buyer. What these title reps do is eliminate deal breakers! Given how much of your time, effort and money you’re investing in your deals, having a title company eliminate deal breakers is pretty important.
Here’s what they actually do… (1) A real estate title company in Philadelphia will examine the title history of a property, identifying any outstanding liens or other claims of ownership. A “clear” or “marketable” title cannot be transferred to the buyer until all of these issues are resolved and removed. (2) When that work is complete the title company issues title insurance to protect the lender and owner against claims against the property or lawsuits over title disputes. (3) Title companies maintain escrow accounts for the proper transfer of funds needed to close. (4) They conduct the formal closing, ensuring completion of all necessary documents. (5) Finally, the title company will file new title, deed and other documents with the appropriate authorities.
How Do You Pick A Real Estate Title Company In Philadelphia?
There are many title companies to choose from. They do compete and offer different rates. And they don’t advertise much so how do you pick? You can certainly ask other investors and real estate professionals for referrals, but if you’re working with a hard money lender keep in mind that they have extensive experience working with title companies. Your lender may be able to recommend a representative from a title company who is particularly experienced in the type of real estate transaction you’re looking to complete.
When Do You Meet With The Real Estate Title Company Philadelphia?
You will meet a title representative initially after your offer to purchase to a property has been accepted. They’ll conduct the title search and get back to you with a preliminary title report that will also be shared with your lender and the seller. The title company will advise you about the escrow account. Finally, the formal closing will take place at the title company’s office.
In summary, then, your real estate title company Philadelphia will work hard on your behalf to ensure that you and only you own your new piece of real estate, free and clear, well, except for that lien from your hard money lender, but you knew about that already.