Gulf Coast Land Title Services

What does my Title company do for me?

If you’re buying or selling a home, you’ll need the service of a title company. So, what does a title company like Gulf Coast Land Title, Inc. do in a real estate transaction? In short, we protect the interests of everyone involved in the transaction. Whether you’re buying or selling a property, providing financing or you’re a real estate professional, we’ll ensure that all requirements for a smooth closing and clear title are satisfied. If you’re preparing to refinance your existing mortgage or purchase a new home with a loan, your mortgage lender should require you to find a title company to work with fairly early in the loan process. If you’re not familiar with the home buying, selling or refinancing processes, you may not be certain what a title company does. The title company is one of the most important third parties you will work with throughout the entire transaction. 

Search the Title History of the Property

During the early stages of the process the title company will begin researching the property’s title history and will issue a title insurance commitment. This title commitment will show all the property’s owners as well as the requirements to transfer clear title to the property. Ultimately, the title commitment should show a clean, unencumbered line of ownership that leads to the current owner. If the title history research shows that the current owner does not own the property legitimately or that there may be a dispute or other issues with the title, work is completed to generate a clear title; also known as clean title.

Facilitate the Closing Process

The title company also facilitates all aspects of the closing. This involves preparing the title documents they need to close, researching the current payoff figures and creating a Closing Disclosure and/or ALTA Settlement Statement. The Closing Disclosure and/or ALTA Settlement Statement shows all of the financial transactions related to the closing, such as the lender’s fees, title fees, hazard and flood insurance fees, real estate fees, taxes, escrows, payoffs and other miscellaneous fees involved in the closing based on which type of property you’re buying or selling. The title company will handle all financial disbursements related to the closing, including sending wires or preparing checks for all of the vendors who will be paid for their services at closing.

Issues Title Insurance

A final service offered by the title company is the preparation of a title insurance policy for the lender and/or the Buyer. The title insurance protects the lender and/or buyer from financial liability in the event there is a dispute over the ownership of the land or a lien later. These types of disputes can create costly legal fees and could also strip the property’s ownership from the buyer. Title insurance, in accordance with the policy, will pay for these legal expenses and for any loss if one occurs.

What Does my Title Company Do for me During the Closing Process?

Verify Property Tax Status and Payments

It’s the title company’s duty to verify the current status of all property taxes. We:

• Check with relevant government agencies and districts which impose taxes to ensure that both state and local property taxes have been paid.
• Prorate bills and taxes based on settlement dates and billing periods on the settlement statement.

Order Estoppel Letters from Associations

If you are purchasing or selling a condo, townhome or single-family home with an association, the title company will order an  letter from the association(s) which will advise the title company of the following.

• Financial status of the account.
• If there are any violations against the property.
• If there are any special assessments due or pending.
• If the utilities are paid by a master meter or to the city.

Order Payoffs from Lenders, Judgment Creditors and/or Lien Holders

If any outstanding mortgages, judgments, or liens show up during the title company’s initial title research, they will order payoffs and disburse the funds at closing to be sure they are paid in full and satisfied.

Order a Search from The City

This is an important search to determine if there are any open permits, code violations or delinquent utility accounts against the property. Any one of these items could become costly issues after purchasing a property. Imagine finding out after a closing that a permit was opened with the city for an addition or repair made to the property and it was never given a proper final inspection and the permit was never closed out. If you signed an as-is contract, this could be a very costly issue for you.

Verify Seller Legitimacy and that he/she/they have the Right to Sell.

The title company does extensive research and verifications to determine that the seller is who they say they are and has the right to sell you the property. Imagine that the title holder died, and their son said he wants to sell the property to you. However, you didn’t know that he had two sisters and a brother. Do they need to be involved? What if a corporation owns the property? Does the person selling it to you have the right to do so on behalf of the corporation? These are just a couple of the issues title companies investigate in order to determine that the seller has the right to sell you the property.

Make Sure All IRS Requirements Are Satisfied

Have you ever heard of FIRPTA or FinCEN or a 1099-S? Don’t worry if you haven’t. A title company makes sure all of these requirements are met for during a real estate closing.

Manage Escrow Accounts

During the real estate transaction, a title company holds vital documents and deposits until the completion of the closing process. The escrow account protects the lender, buyer and seller.

Issue Title Insurance Policies

One of the most important services a title company provides is issuing title insurance policies for the lender and the buyer. The lender’s title insurance policy protects the mortgage company’s investment. The owner’s title insurance policy protects buyers from any hidden risks, unexpected claims or fraud. Both insurance policies provide coverage against financial losses due to title defects and legal costs.

Manage Lender Documentation and Coordinate the Closing

At Gulf Coast Land Title, Inc., we obtain all loan documents from the lender for closing. With the appropriate loan documents, we’re able to complete the Closing Disclosure and ALTA Settlement Statement. We also prepare the title deed and documents required to comply with federal and state laws. Then, we reach out to all parties and coordinate the closing. At closing, we provide full explanations of all documents to all parties involved before signing takes place. We ensure the closing experience is seamless for all parties and everyone receives what they’re owed. We also collect all outstanding fees, premiums and commissions and disburse them appropriately. At closing, we pay off any existing mortgages, liens or judgments on the property and send the loan documents back to the lender. Finally, we ensure all documents, such as the mortgage and new title deed, are filed with the court.  WE BELIEVE TIME IS OF THE ESSENSE.

The Title insurance company is a critical player in the real estate transaction, providing important services to all parties.