A. Maryland allows you to select either an attorney or Title/Settlement company to ensure that the home you are purchasing properly transfers from the current owner to you. Real estate title companies work with the lenders and real estate agents of both the buyer and seller to facilitate the terms of a real estate contract. And while buyers typically have very little interaction with these companies until the day of settlement, they perform an important role throughout the real estate transaction.
Once a contract has been received, the title company examines the public land records to investigate the title to the property to establish that that the contract seller is the legal owner; if there are open mortgages, judgments, or any liens which must be satisfied before “clear” title can be conveyed; if there are existing restrictions, easements, public utilities, etc., which may limit rights to the use of the property, or grant rights to others who are not property owners; and determine the status of property taxes and other public or private assessments.
Throughout the process, the title company maintains close contact with the lender and buyer and seller agents to obtain the documentation necessary for closing the transaction. Working closely with the bank, the title company compiles all the lender’s charges, miscellaneous fees, title company fees, and other closing costs into a final Settlement Statement. When all of the parties have been assembled at a time they have prearranged, the papers and fees will be explained by the title company and the papers will be reviewed and executed. The title company assumes the responsibility of collecting all funds necessary for the transfer and the prompt and accurate disbursement of such monies. After the closing has taken place, the title company will make sure that the legal documents have been filed for record, the mortgage lender’s requirements have been fulfilled and all of the necessary paperwork returned to them, all outstanding liens have been fully paid, and the title policies prepared and sent out.