Here are a few tips when choosing a title company
Spring is generally viewed as the best time of year to buy a house — days are longer, lawns are greener, and inventory is typically higher. That means many buyers are either getting started or in the process of finding a home. In today's housing market, there's a lot to consider when finding a home. With low inventory and high interest rates, the process is stressful enough without having to worry about the closing.
As a closing agent for 20-plus years, I've often heard the question: What does a title company do? Followed by, why is that important in the homebuying process?
A title company is a third party that works on behalf of the lender, buyer and seller. They are responsible for ensuring the property has clear title for the transfer of ownership and all documents related to the ownership of the property are accurate before the final transaction on the property. The company provides research and ensures the clear title of the real estate. Since the buyer typically pays for the title insurance, they may ultimately choose the title company.
Why is title insurance important? Title insurance protects buyers from financial loss due to title defects, such as a previous owner's debt, liens and other ownership claims.
When looking for a title company, in addition to cost, buyers should consider the company's local expertise, years in the title insurance business, services and commitment to the local community. Friends and family, as well as real estate agents and lenders, may provide recommendations to help you get your search started.
Buying and selling a home may be stressful, but having the peace of mind with a clear title along with a smooth closing that can go as seamlessly as possible is in everyone's best interest. I've seen a lot of different things that have delayed the closing process. As you prepare to close on your property, here are a few things to consider that may help the process go smoother.
Ask about concierge or digital closing options
More and more title companies are offering digital closings through remote online notarization. Missouri law allows companies the ability to close loans remotely through a secure online process. Other companies offer concierge services by bringing the closing process to the customers. For example, WACO Title recently invested in a mobile closing van equipped with everything the agent and parties need to complete the closing at a location of choice. If you're worried about juggling schedules or rushing across town for a closing, these options help alleviate additional stress to the closing process.
Non-owner spouses still must sign mortgage documents
One thing often misunderstood is marital interest when it comes to property. Missouri is a marital interest state, which means that a non-owner spouse must sign mortgage documents when the owner spouse sells or conveys property. That means whether you bought the property as a single person or a married person, your spouse will always have to sign any documents pertaining to the property.
Ensuring the non-owner spouse is available to sign the documents can help avoid closing delays.
Transfer on Death isn’t the same for real estate as for vehicles
I often get asked to have a Transfer on Death on the title when buyers purchase property — similar to what people do for their automobiles — so the property won't have to go through probate. For real estate, it isn't as easy as adding a TOD on the vesting deed. Instead, you would need a Beneficiary Deed prepared, which can be done after the vesting deed is recorded.
Ultimately, finding a trustworthy and knowledgeable title company is just as important in the homebuying process as choosing a lender and real estate agent. As an independent third party, we help facilitate a smooth and secure transfer of property ownership during closing — making the final step in the process as seamless as possible.
Tammy Sawyers is a senior closing agent for WACO Title Co.
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