The average person does not buy more than 1 or 2 houses in their lifetime so the transaction is viewed as pretty substantial. Most homes cost tens of thousands of dollars and some are upwards of that, so you can see why banks and homeowners alike take steps to preserve the value and ensure the transfer of the property.

The title company performs the necessary role of checking all aspects relating to the title of a property right from the legal ownership to title insurance. The buyer and title company have a common goal of avoiding any legal disputes which might emerge later in case the title of the property is not clear.

The title company makes sure any and all liens, including mechanics liens and tax liens, are taken care of before the transfer. They also confirm legal boundaries just in case there may be a discrepancy.

As soon as both parties sign the purchase and sales agreement, the file is sent to the title company who immediately start working. They assess the compliance with all local and federal laws and regulations and take care of the following:

Confirming the identity of the sellers

Their main role is to establish the seller in whose name the property is registered as per the legal documents submitted with the State. The title companies find out the legal owner of the property by examining and verifying the public land record held by state.

Property has Clear Title

The other important objective of the title company would be to ascertain the title of the property being purchased by the buyer is absolutely clear. This would mean that the property has no encumbrance or is not under lien. There is no property or any other fiscal tax or costs due by the seller to the state.

Insuring the title of the subject property

The title company also sells the buyer a form of insurance protecting them against any future difficulty with the title called “title insurance”. This insurance policy takes care of any legal and administrative costs in settling any disputes involved in the title transfer. Both, the buyer and the lender purchase title insurance policies to protect their own interests.

The final stamp of approval is called the “Commitment of Title Insurance” and is issued only after the title company has signed off on the authenticity of the property title. All parties including Realtors, lenders and seller and buyer get copies of the document for their own records.

It is in your interest to get all ownership and legal details about the property that you intend to buy. Share the responsibility with the company checking the title for your property and understand the details that they provide.

Gavin King is the Designated Broker of Realty In Idaho and enjoys writing articles on boise idaho homes for sale and homes for sale in boise idaho