Country Roots Realty logo
Country Roots Realty logo
Country Roots Realty logo
Country Roots Realty logo
Country Roots Realty logo
Country Roots Realty logo

Title & Escrow

Understanding Title and Escrow When Buying or Selling Real Estate in East Texas

Buying or selling property involves more than agreeing on a price and signing a contract. Title work, escrow deposits, required documents, and closing arrangements all play an important role in getting a real estate transaction to the finish line.

 

What Does a Title Company Do?

A title company helps coordinate important parts of a real estate closing. Depending on the transaction and services provided, this can include researching public records, examining ownership history, identifying liens or other title issues, preparing a title commitment, coordinating closing documents, handling funds, and arranging recording of documents. Title work is particularly important when buying rural land or acreage in East Texas. Buyers may need to understand recorded easements, legal access, ownership interests, existing liens, and other matters affecting the property. The appropriate title professionals can explain title-related findings and help identify issues that need further review.

What Is Escrow in a Texas Real Estate Transaction?

Whether you are buying or selling property, there are usually large sums of money being transferred. It is so important to make sure those monies are protected and handled by a neutral third party. Most people in a real estate transaction utilize the services of a title company or attorney for this. The title company plays a significant role in the disbursement of funds where and when needed. Funds are signed for and dated, which creates that paper trail required to keep parties in line with the stipulations of the contract terms and deadlines. Those funds are held in an account (in escrow), by the title company which is the neutral third party until the contract requirements are met. 

What Is a Title Commitment?

Another aspect where title companies are invaluable, is the research of the chain of title and making sure there are no clouds that could affect the new buyers owning and usage of the property. They will run a title search, making sure to check for liens, judgments, encumbrances, etc. When everything has been looked in to, title will send out what's called a preliminary title commitment, which is the results of what all was found pertaining to that properties history of title. A title commitment is a document outlining the conditions under which a title insurance policy may be issued. Buyers should review it carefully and ask questions about anything they do not understand. If there are issues pop up, the seller's agent and the buyer's agent get to work on getting those clouds cleared, by working with the title company, their clients, and any other parties involved with those specific clouds. If all can be cleared by giving the title companies sufficient releases and/or evidence, then title will revise the commitment with those updates, and send everyone out a new version. A title insurance policy is issued which protects the lender and/or owner against lawsuits or claims against the property over the title. 

What Happens Before Closing?

Title companies will be working with the lenders to balance the numbers in the paperwork until the day of closing, as well as receiving any surveys, getting tax information from the local offices, and anything else needed to make the file complete.

When all service providers are done, reports are back, lender and title company paperwork is balanced, title will call all parties and get them scheduled to come in to sign their share of paperwork. All parties need to bring their drivers licenses or valid form of ID, and if any funds were needed to be brought to closing, make sure to get the exact amount in the correct form of payment acceptable to that title company. If a client is out of area and unable to sign in person, title companies have ways to get those documents to them for signatures with a notary where they are. Title companies also file and record all paperwork associated with a transaction once complete.

When documents are all signed, funds are cleared, and disbursed between the parties, all that's left, is a big Congratulations! 

 

 

Local East Texas Title Companies in Panola County & Shelby County