Title Company

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When buying a house at a trustee's sale what role should the title company play before and after your purchase? if any... Thanx in Advance

Comments(2)

  • JohnMichael21st December, 2002

    Throughout the sale and closing process the Title Company acts to insure that you are protected, beginning with placing the title in order and continuing through the commitment phase, closing scenario and issuance of the title insurance policy.

    Once a title order is placed, the search, examination and disclosure process begins. The courthouse abstractor searches the public records and prepares a detailed brief, which is translated into a title "commitment" by the title officer. This commitment advises you that the Title Company is committed to insure

    The Title Company assures that the transaction is handled efficiently and accurately.

    The Title Company used is very important. At the time the contract is signed, you have the right to request the Title Company of your choice, and it is important that you understand the services they provide

    The Title Company will examine and abstract the public land records to investigate the title to the property. They will obtain or verify:

    1. that the contract seller is the legal owner;
    2. the presence of open mortgage, judgements, or any other type of lien which must be satisfied before "clear" title can be conveyed;
    3. existing restrictions, easements, public utilities, etc, which may limit your rights to the use of the property, or grant rights to others who are not property owners; and
    4. the status of property taxes and other public or private assessments

    They simply protect you from hidden risks like

    1. False impersonation of the true owner of the property by the seller or other persons previously in title
    2. Forged deeds, releases and other documents
    3. Deeds by persons of unsound mind
    4. Deeds by minors
    5. Invalid documents completed by an expired attorney
    6. Invalid deeds delivered after the death of the grantor
    7. Deeds by supposedly single persons but actually married
    8. Fraud
    9. Claims for unpaid estate inheritance and gift taxes against prior owners of your home
    10. Unrecorded easements – giving one party the right to enter another party’s property
    11. Undisclosed descendents of former owners of your home or the land on which it is situated

    This is just the basic stuff

    I would suggest a course on REI. Most cover this area.
    [addsig]

  • jthiara21st December, 2002

    I have contacted a title company and I asked to do a title search for liens on a property in foreclosure, but most companies I talked to told me that they do not do these types of searches because of the liability. There is another company that I tried to contact but I still have not recieved any kind of answer as to what they can do for me. What should I ask them to do for me? As for the title search, is there a name for this specific service? So I get title insurance on the property right after the foreclosure sale? I don't want to pick the property and get screwed later. I ask because the trustees sale is on 12/26/02 and I am planning on bidding on it. Also names of some good rei courses would be appreciated. Thank you for replying.
    Happy Holidays Everyone!!

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