What is the process in obtaining a title from a title company? This question breifly discribes the process of obtaining a title policy from a title company. First thing, you would go into a title company...
First thing, you would go into a title company with your real estate contract. Generally speaking, a real estate contract can be prepared by a licensed real estate broker or a real estate attorney. The realtor will enter in and write the real estate contract. You might also sell your property to someone you already know. In this case you could go to an attorney who will draw up a real estate contract between you and your new buyer. Those are the two main ways that you can get a contract.
The contract will provide them with the legal description of your property. Through your property taxes, you can also get the legal description of your property. However, usually the seller brings the contract and the legal description. The seller will also provide a warranty deed. The seller would bring an earnest money contract, and then he enters into an agreement with the buyer to decide who pays for what.
The buyer and the seller both have to sign the contract. They must go through all the terms on the contract, and they must agree. They must decide who pays for the taxes, who pays for the title insurance, and who pays for the recording fees. Generally, the buyer's obligation is to provide for fire and extended coverage for his insurance. Once he obtains the property, he generally increases the insurance on the property. Hazard insurance such as fire, hail, flood insurance may be required by the lender, and this is usually the expense of the buyer. The lender usually requires both kinds of insurance, mortgagee title insurance for the amount of the loan and hazard insurance of fire, hail, flood for the possible damage to the improvements on the property
Generally, if the buyer needs financial assistance, which is normally the case, the buyer goes wherever he wants to borrow money. He then enters in an agreement with the terms of that institution. The buyer and lender settle what kind of money they want down, how much of an interest rate the buyer is going to get, how long it will take to pay off, and any other requirements the lender specifically ask. So the buyer enters in with his mortgage company. Then, the mortgage company sends a letter to the title company saying 'yes the buyer has financing.' The lender also needs a copy of the real estate contract. The lender can see that the buyer, whom they lend money to, has entered into a written agreement with the seller. All of this has to be written; it can not be oral. It all has to be written, signed, and dated. A contract, as you know, is an agreement between two or more persons or entities which creates or modifies a legal description. It is based upon an offer and an acceptance.
