There are many people who want to know the purpose of a title company in real estate transactions. Every home buyer wants to make sure that they will receive the title of the property free and clear. Buyers should be careful and never buy a house unless the title is free and clear.
Because you will be held legally responsible for the liens or encumbrances on the property, you do not have to wait until after you buy a house to ensure a free and clear title.
The best independent title company plays an important role because it is not an abstract of title, which means that he was looking through the records in the country where the property is located, and make sure that the title is free and clear of any and all liens and encumbrances.
An abstract will determine if there are any liens against the property, or if there are other concerns that could arise later and affect the ownership claims.
The title company will conduct research into the latest mortgages, deeds, liens, claims, maps, tax records, divorce, court decisions and marriages that might weigh on ownership claims.
Once the abstract is done, the opinion letter of the title and / or commitment of title insurance will be issued. These documents will be a list of things that need to be resolved and everything that needs correction so that the buyer receives a good title to the property.