Title and Legal Coordination
What Does a Title Company Do
A title company or closing professional helps coordinate the transfer of ownership. The process may include a title search, review of liens and other matters affecting ownership, preparation of closing documents, handling of funds, and issuance of title insurance when applicable. The professionals involved and the services they provide can vary by transaction.
What Is Title Insurance
A lender’s title insurance policy protects the lender’s interest in the property. An owner’s policy is a separate form of coverage for the buyer’s ownership interest, subject to its terms and exceptions. Ask the title professional to explain the commitment, exceptions, costs, and coverage before closing.
Buying in Your Name or Through an Entity
Some buyers consider purchasing in their individual names; others consider an LLC, trust, or another entity. The best structure depends on financing, taxes, liability, estate planning, and the buyer’s circumstances. Ancara can coordinate the real estate transaction, but an attorney and tax adviser should evaluate the legal and tax consequences before the buyer selects or changes an ownership structure.
Questions to Ask Before Closing
- Who will conduct the title search and handle the closing?
- Are there liens, easements, association issues, or other exceptions to review?
- What title insurance policies are available or required by the lender?
- What are the total closing charges and who pays each item under the contract?
- If an entity will hold title, have the lender, attorney, and tax adviser reviewed the structure?
