- Views: 8
- Report Article
Why You Should Hire A Title Company
Posted: Oct 14, 2015
Whenever buying a new home, the choice of the title company can either make or break your purchase. The title company plays an important role in all real estate transactions, as it insures and examines title claims. It also determines the legal owner of the house and verifies any additional owners. It does this by examining property records which are available through a title search. Moreover, a certified title company provides title insurance and generates title reports.
All of these services rendered by a title company help protect the buyer of the property against numerous complications, such as lawsuits from previous owners, back taxes, mortgages, and liens. In short, a good title company can protect you against a variety of legal problems. However, not all title companies do their tasks thoroughly, so you may find out about liens held against the title of the property after you have made the purchase. Best practice certified title company central Arkansas would never do a thing like that. So read this article carefully and you will discover two factors that will help you find the best certified title company in your area.
Factor 1: Communication
Nothing is more important than responsiveness and communication of a title insurance company. These two are often an indication of how the company treats its customers. It can be also be an indication of company's culture. Though most companies respond to customers' inquiries quickly, some don't. So when choosing a title company, pay attention to how fast your email inquiry receives a response. Also, pay attention to how transparent the answer is. Make sure to read any fine print. Also, examine the contract presented by that company and ask yourself whether it is easy to understand. Some companies like to obfuscate the most important points of their contracts with complicated legal jargon. Make sure you stay away from companies like that.
Factor 2: Type Of Company
Though you may think that the type of title insurance company is the least important factor, it can actually make or break your home purchase. This is so because there may be a conflict of interest if the title insurance company is owned by the mortgage provider. Therefore, when looking at title companies, check whether they are one of the two types described below. If so, avoid them at all costs.
When the title insurance company is either partially or wholly owned by the mortgage provider, it is called "joint venture", often abbreviated as "JV". When the title insurance company has a very close business relationship with the mortgage provider or has the same owner, it is called "affiliated business arrangement", often abbreviated as "ABA". Both JV and ABA types of title insurance company are likely to cause conflict of interest because in these business arrangements the title insurance company is dependent upon the mortgage provider and is likely to oversee minor problems.
The only type of title company you can trust is the 100% independently owned one.
If you are searching for a title company, check out our pick for the best practice certified title company central Arkansas.