The work of the title company begins long before the settlement. It gathers information from many sources, including buyers, seller’s mortgage companies, land registries, and court records. Coordinate with all parties involved in the arrangement. Look for any potential problems in transactions and clear judgments and/or liens against the parties prior to the transaction.
At the settlement desk, you collect and disburse the transaction funds, transfer ownership of the property, and issue title insurance after settlement. The title company is also responsible for recording the deed and deed of trust with the land records. It also tracks and records the release of the seller’s mortgage.
When you have a property that will bring you at least $20,000, you may want a title company to help you with the sale. Still, it doesn’t take much out of that deal, and using a title company is a convenient way to have title records organized, transferred, and recorded. Typically, you pay for your services through cashier’s checks or wire transfers.
You do not have to show up at your office to sign for properties. They can do what is called signings in absentia. Just notify that you are not available at the office or home. They will send you the paperwork for you to sign.
Once the title company has everything signed and together, they will send the lien money to the owner/seller, on their behalf. They will then send the deed for your record and instruct the county to send you the deed after the county offices have done the record. It is important that the title company has your correct address.
Sometimes it is a good idea to have a neutral third party, such as a title company, handle the transfer of funds and related documents from one party to another. Especially when you are new to the tax delinquent investing business. These title companies have gone through this procedure so many times before that they have mastered all the necessary requirements attached to this type of transaction. Without the help of any experts, you may miss some important compliance and could cause delays. Use expert help to get started, to learn the right way to do things, and over time, you’ll learn the proper procedures that will give you the confidence to do the title work yourself.