Knowledge Center

What is a Title Company?

The job of a real estate title company is to make sure the seller is conveying, and the buyer is receiving, good and clear title to the subject real property and to handle all of the details of the transaction. The company will research and review the history of the property, usually going back 40 years or more, to make sure the seller has received, and therefore has the right to give, good and clear title to the buyer. The title company will also ensure any liens attached to the property are cleared before the buyer takes ownership. The company backs all of this up with a title insurance policy for both the lender and buyer, so in the event they missed something the buyer is completely covered.

On top of that, the title company is responsible for conducting the transaction in accordance with all the terms of the contract. They will work with the buyer’s lender to put all the documents together, conduct the closing, collect and disburse all the money, and record the legal documents with the county Register’s Office to make the buyer becomes the record owner of the property.

What is Title Insurance?

If you are taking out a mortgage loan when purchasing your home, your lender will most likely require title insurance. In short, title insurance protects the lender and buyer from financial loss due to title defects. It will also insure your ownership rights to the property.

Do you need title insurance?

Your lender will more than likely require you to purchase title insurance unless you are paying for your home out of pocket. Title insurance protects yourself from title defects which could give someone else claim to your property. We advise purchasing a policy as a form of protection.

How much can I expect to pay for title insurance?

Title insurance rates vary depending on the cost of the home and the lender. Typically, it will usually take up less than 10% of your total closing costs. However, unlike other insurance policies, title insurance is a one-time cost that you pay at the time of purchase instead of a monthly premium.

What does title insurance protect me from?

Title insurance will pay for any legal defense costs and reimburse you for any mortgage payments that you may be unable to make due to losing your home if someone else claims it. Title Insurance can also protect you from many things including:

• Forged deeds, releases, or wills
• Misinterpretation of wills
• Deeds by persons who are supposedly single, but are actually married
• Deeds by minors
• Liens
• Fraud
• Unpaid taxes
• Unpaid inheritance
• And more...

What is closing?

Closing refers to the part of the real estate transaction process where the title will move from the seller to the buyer. Closing may also be referred to as “settlement.”

Are all title companies closing companies?

No, not all title companies are closing companies. There are some title companies that only sell insurance and others that may only work in escrow. At Greater Nashville Title we offer a variety of real estate, title and legal services allowing us to help you with all of your closing needs.