Congratulations! It’s time to close on your house! Whether you are buying or selling, this is an exciting time. One of your next steps is to get the agreement to a title company. But what does a title company do in Grand Rapids? What should you expect, and what is with all of those fees?
1. Title Search
First, the title company will do a thorough search of your property’s history. They will look for the chain of ownership, and check the transactions when the house was bought or sold. In addition, the company will make sure that all documents have the proper signatures in place.
If anything is missing, the title company will tell you about it, so you can work to remedy the problem.
They will also check for liens on the property. These could be from back taxes, unpaid contractor bills, or a missing signature on an old document. In Grand Rapids and Kalamazoo, these issues will need to be fixed before you can close on the house.
In addition, the title company may ask for a property survey to precisely determine where the property lines lie. This can be especially important with larger properties, or those with disputed fences.
2. Title Insurance
Once they are confident that the title is clear, they will issue title insurance. This protects the home buyer and mortgage company from disputes over home ownership.
In short, it allows you to be confident that you actually own the home. If someone were to sue, and claim that they were the owner of the home after you purchased it, the title insurance would help protect you from these claims and legal fees.
This insurance is divided into two parts. Lender’s insurance protects the mortgage company, and Owner’s title insurance protects the home buyer. These have different costs, and the title company should be able to show you this clearly.
3. Deeds and Filing
When a home is bought or sold, several documents need to be filed. These include title paperwork, deeds, mortgage agreements, and more. The title company should ensure everything gets filed with the right people.
They will also work to get all of the right signatures on the right documents. This can save you a lot of headache later, and is a valuable service.
4. Quality
So what should you expect from a title company in Grand Rapids? Top-notch service.
First, they should be responsive. If you have questions, they should answer immediately or get back to you quickly. A house purchase is a major life change, and they should be supportive.
Secondly, they should be good communicators. If you have questions on the closing documents, the title company should be able to explain it simply and clearly. If you don’t understand their explanations, ask!
Finally, they should be accurate. Titles and deeds are detailed documents, and it is important that all of the wording is just right. If you are not confident in their skills, it’s best to look elsewhere.
Fortunately, there are many excellent title companies in Grand Rapids and Kalamazoo. As always, get references when you can. So proceed onward, and enjoy the process!