Title Company

[Ahmed Tausif Aijazi]

I am extremely new to REI. I have a very basic question. What does a title company do? and what should I be considering before I select one to close a deal?

[Ned Carey]

The title company or escrow agent in some areas makes sure the title is good. They go through the land records and make sure the person selling the property owns the property and the title is good. In most areas they will also research all liens and judgements against the property and make sure it all gets paid off at settlement. And yes as Zach Sikes says they will insure the title.

Kyle Dee, yes you might shop around for a title company but price isn't what you are looking for. First the insurance rates are regulated by state law so fees may not vary that much.

What is important is that the title company get the figures right and does thing in a timely fashion. As an investor it is also important that they know how to handle investor deals.

At my last closing the title company wanted charge twice for the auctioneer commission. The auctioneers commission is know as a buyers premium. The title company not only charged twice but put the "Buyer Premium" on the sellers side of the HUD-1. You'd think they would know the difference between buyer and seller.