What Does A Title Company Do?

Carmen Rodriguez 773.457.2495
carmen.rodriguez@cbexchange.com

Did you even know to ask that question? Most people don’t. I sure didn’t when I bought my house. I was primarily concerned with what color I was going to paint the kitchen and how I was going to fit all my shoes into that little closet.

Many of us believe the deed to a house is the document that transfers ownership and, without splitting hairs, that’s more or less true. However, for purposes of this conversation, we’ll split hairs. The deed is only as good as the authority of the person who’s delivering it. I could hand you a deed to my neighbor’s house, but if I don’t have the right to transfer that ownership it’s not worth much, is it?

Title Insurance is the contract that a title company provides to a policyholder to protect them from losses arising from ‘defects’ in the title, that is errors in recorded liens, gaps in the chain of title, etc. This insurance is provided based on a review of the title history (or chain of title) on the property through a public records search. An extended policy protects the policyholder from secret, or unrecorded, liens.

Both seller and buyer in a property transaction must have title insurance – the seller to prove his/her right to transfer title and the buyer to protect him/her from any claims on the title once he/she becomes the owner. The order for title insurance usually comes through each parties’ attorney.

When preparing to sell or purchase a property in Illinois, talk to your agent and/or your attorney about title companies and policies. Review ratings and examine costs. Many times, attorneys act as agents for title companies and receive compensation for securing title through particular agencies. This may or may not impact your cost for the policy, so it’s something to consider when selecting a title company.

For more information on how we can help you prepare for your home purchas or sale, visit www.carmenandtony.com.