Title Examination Attorneys
For any real estate transaction to be completed successfully, it’s important for the title of the property in question to be thoroughly examined. This action provides assurance and/or reassurance to both the buyer and the seller the title is free and clear of obstacles that could slow or halt the transaction. Goosmann Rose Colvard & Cramer, P.A. is devoted to helping our clients quickly and effectively complete all real estate transactions. Contact our real estate law firm today to learn more about our title examination service.
What Is A Title Examination?
A title examination is the comprehensive inspection, review, and search for the historical and present condition of the real estate title by a real estate closing attorney with Goosmann Rose Colvard & Cramer, P.A. The condition of a title refers to any issues, such as encumbrances and/or liens filed against the property or errors or defects in any conveyance. It’s generally preferred that a title be marketable, meaning clear and in good legal condition, and insurable, meaning capable of being insured by a title insurance company, at the time of a real estate closing.
How Can A Closing Attorney Help?
Many real estate buyers and others believe the closing process is simply signing documents and receiving the keys to the property. But, a real estate attorney helps streamline the process and helps you avoid unnecessary holdups by providing clarity and/or coordination on a number of steps related to closing the transaction.
In general, this type of insurance preserves and protects the interests of the buyer and the lender in the property should an issue with the title develop in the future. Once an attorney has examined the title, he or she prepares an opinion based on the information discovered during the title examination. A title company then uses the opinion when issuing a title binder or commitment for insurance, the first step in receiving title insurance.
Both the buyer and the lender covet a clear property title in any real estate transaction. When acting as a title examiner, an attorney with Goosmann Rose Colvard & Cramer, P.A. looks for any specified restrictions, such as easements or encroachments, or other possible issues with title to the property. An attorney also verifies any existing mortgages and/or liens on the property and ensures they will be paid and satisfied.
A closing attorney frequently acts as a coordinator during the closing process. There are numerous lines of communication to keep open and periodically communicate with to ensure the transaction is successfully closed in a timely fashion. Examples of whom the attorney coordinates with include the buyer’s mortgage lender, the realtors, the mortgage lenders of the seller, a homeowners insurance company, surveyors, and contractors.
Review And/Or Prepare Required Documents
The closing attorney reviews, prepares, and/or coordinates to have in place by closing all the required documents. The closing attorney is present and/or available at the closing to review and explain all documents related to closing the transaction, such as the deed of trust and settlement statement.
Close Transaction & Disburse Funds
Once the transaction has been closed, it’s the responsibility of the closing attorney to update the title with the county Registry, along with recording the deed, any mortgage or other documents for closing. Once recording is completed, other closing fees, costs, and proceeds related to the transaction are disbursed in accordance with the settlement statement from closing. The closing attorney also prepares a final title opinion once recording is completed and that is sent to the title company with the title insurance premium collected at closing. From there, the title insurance company will finalize and issue to the buyer and any lender the final title insurance policy.
The Title Examination Process
A real estate closing lawyer reviews the title history and all related documents for any issue which could impair the marketability and/or insurability of the property or present a future issue for the buyer. The process is typically conducted while the property is under contract, and in time for the seller to remain responsible remedy any issues prior to closing.
During the examination process, an attorney looks through all documents related to the property recorded in public records of the County where the property is located, such as:
- All deeds and ownership transfers associated with the property, typically for the past 30 years;
- Outstanding liens, such as mortgages or tax liens; and
- Any related will, estate, and/or trust documents.
Am I Required To Have An Attorney Conduct The Title Examination?
The State of North Carolina requires a title attorney to conduct the examination and transaction closing. A title insurance policy is only issued after the title company receives an examination report from an approved attorney and generally applies to the real estate buyer or an existing owner. However, it can provide clarity and guidance to the seller if any title issues are discovered and/or if the seller is not sure they are in a position to sell (such as in the event of an estate sale, a manufactured home sale, etc.).
The title examination is perhaps the most important part of the entire transaction. A title attorney with Goosmann Rose Colvard & Cramer, P.A. can make sure your real estate transaction is favorable to your interests from start to finish. Contact our law firm today.