In real estate transactions, title companies act as combined agents for the insurance firm, the seller and the buyer, the mortgage lender, and all parties involved in that transaction, particularly if they oversee the far-fetched number of information involved in selling and buying real estate and are accountable for closing processes from the start to the end.
Top roles and duties of title companies in a typical real estate transaction
Title search and review
When purchasing a home, it’s important to ensure the title is clear. That means the title has no defects that can affect the buyer’s ownership rights afterward. An extensive title search will help reveal all the concealed title issues. A title company will do this by assessing public records to inform the involved parties of the condition and state of the title. They’ll also share all details related to any legal action involved in the home, like foreclosure.
Insurance of title insurance
Protecting a property title is essential. Without a firm title insurance policy provided by a dependable title agency, the buyer might lose the home if a person files an ownership claim even many years after the closing process. In most cases, the title agency issues a title insurance policy as an independent entity on behalf of the title insurance firm. The title firm facilitates the documentation for issuing the policy. That means the insurance premium goes to the underwriting firm, which takes the risk of loss.
Facilitating the closing process
A title company can serve as a closing agent for real estate transactions. That means they serve as agents for all parties involved in the transaction. During the closing process, the title company gathers signatures on all closing documents and receives and distributes all payments related to the transaction.
Acting as an escrow officer
The title company can act as an escrow officer in connection with real estate deals. The company holds documents or money as part of the real estate transaction.
Why title agencies should use advanced software
If a title company doesn’t have an effective system that helps them to streamline the whole title production, meeting the requirements of all parties involved in a real estate transaction will be hard. So, they should invest in software for title companies.
Title agencies should have a structure that allows them to operate effectively, provide quality services and improve productivity as they empower their staff to work smart.
How title agencies benefit from better software
Title agencies will enjoy numerous benefits when they implement the right technologies to support their operation. Here are some of the benefits that come from having specialized software for title companies.
Specialized title software improves efficiencies and lowers operational costs. It also presents a chance for flexible vendor pricing that doesn’t need extra human intervention. This leads to improved profit margins.
The software enables faster communication by incorporating automation throughout the whole process and with everyone involved in the transaction.
Proper staff management
The software comes with preset guidelines and better automation. So, a title agency will get more work done with fewer full-time workers. This allows them to shift the individuals they have on staff into higher-value posts. It lets less experienced workers work efficiently.
Easy software integration
The closing process requires collaboration from various stakeholders. Software for title companies makes it easier to connect technologies and share information seamlessly and safely.
Improved data security
Since advanced systems are stored in the cloud, data security has become a key advantage. The firms have invested millions in safeguarding their client’s data, and that protection extends to all agencies using the software.
Vendor performance tracking
Title agencies and mortgage lenders depend on vendors for their 3rd party services. Vendor management and due diligence are the common challenges for the two. The right software for the title company will provide stronger vendor management modules that offer numerous user advantages.