Title Search and Escrow Services

When you enter into a purchase agreement to buy real property, as part of the buyer’s inspection and due diligence process, you will need a title search and title and escrow services.  A title company checks the history of the property ownership and makes sure that the title is legitimate so that a buyer can be confident that they are dealing with the true owners of the property that they are buying.  The title search also contains a legal description of the property and a chain of title, which is the chain of ownership or claims to any property rights. The title search will also reveal other important aspects of the property such as:

• Taxes owed on the property
• Outstanding mortgages
• Liens on the property
• Judgments against the property
• Easements
• Leases
• Restrictions
• Ownership of mineral rights

Once the title company checks the title and determines that it is legitimate, they can issue title insurance on the property which provides the buyer with assurances against most any claims of ownership or title rights once the property is transferred.  There are two main types of title insurance: owner’s title insurance and lenders title insurance. The buyer is usually responsible for providing lender’s title insurance and the seller the owner’s title insurance.

Many title companies also provide escrow services in addition to the title functions they perform. They collect all the monies from interested parties, follow the escrow instructions according to the buyer and seller contract and handle the payoff of loans, taxes and sales costs at the close of escrow.

The cost of title and escrow services is relative to the sales price and/or loan amount on the property. The fees they charge for their services are part of the buyers and sellers closing costs and can be negotiated in the contract. Your Broker should be able to recommend a title company that they work with on a regular basis who can provide timely and accurate services.

Here is a list of the Title and Escrow Services I work with on The Central Coast.