In real estate transactions, a title company plays a crucial role in ensuring that the transfer of ownership is completed legally and efficiently. Because Massachusetts requires attorneys to handle real estate closings, most closings are conducted by a law firm as opposed to a title company. They are typically referred to as “closing attorneys“. However, so long as the title company has a licensed real estate attorney and provides legal services, a title company may conduct closings in Massachusetts.
Regardless of whether it is a closing attorney handling your closing, or a title company, the closing services provided will be similar. A title company provides a variety of services, including title searches, title insurance, and escrow services just like an attorney. In this article, we will discuss what a closing title and escrow company does and how they can help you with your real estate needs.
What is a Title Company?
A title company is a third-party company that provides real estate closing services. They focus in researching and verifying the ownership of a property. They help ensure that the property being sold has a clear and marketable title, free from any liens, judgments, or other encumbrances. A title company provides assurance to both the buyer and the lender that the property is being sold with a clear title.
Title Searches
One of the primary services provided by a title company is a title search. A title search is a comprehensive review of public records to verify the ownership of a property and ensure that there are no liens, judgments, or other encumbrances on the property that will remain post closing. The title company will search public records related to the property, including deeds, mortgages, tax records, and court records.
Once the title search is complete, the title company will issue a title report. The report will provide information on the ownership of the property, any liens or encumbrances, and any other issues that may affect the transfer of ownership.
Title Insurance
Another service provided by a closing title and escrow company is title insurance. Title insurance protects the buyer and the lender against any defects or issues with the title after the closing. Title insurance provides assurance that the buyer is receiving a clear and marketable title, free from any undisclosed liens or other issues.Â
In the event that an issue arises with the title, title insurance provides financial protection to the buyer and the lender. A Massachusetts title company will work to resolve issues with the title prior to the closing and ensure that the transfer of ownership is completed legally and efficiently.
Escrow Services
A title company in Massachusetts also provides escrow services. Escrow is a process in which a neutral third party holds funds or documents until certain conditions are met. Escrow services ensure that all parties involved in the real estate transaction meet their obligations.
During the escrow process, the buyer will deposit funds into an escrow account, and the seller will provide any necessary documentation or other items required for the transaction. Once all conditions of the purchase agreement have been met, the funds will be released from escrow, and the transaction will be completed.
Closing the Transaction
A title company coordinates the signing of closing documents for a home sale by ensuring that all parties involved in the transaction have access to the necessary documents and that they are signed in a timely and efficient manner. The title company will work with the buyer, seller, and their agents to ensure that all documents are properly executed and notarized. This includes the signing and or recording of certain such as the Deed and Mortgage.Â
The title company will also ensure that any necessary funds are transferred to the appropriate parties. By coordinating the signing of closing documents, the title company ensures that the transfer of ownership is completed legally and efficiently, protecting the interests of all parties involved in the transaction.
Conclusion
In real estate transactions, a Massachusetts title company plays a crucial role in ensuring that the transfer of ownership is completed legally and efficiently. It is more common to see a real estate closing attorney in Massachusetts handle a closing but the functions are similar. They provide a variety of services, including title searches, title insurance, and escrow services.
Using a closing title and escrow company in Massachusetts can provide assurance that the property being sold has a clear and marketable title, and can provide financial protection to the buyer and the lender in the event that an issue arises with the title. Additionally, a title company may provide escrow services, which can save time and reduce stress for all parties involved in the transaction.
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