What is title work? Why do I need a title company when I am buying a home?

The Barr Team First Time Homebuyer Info, Info for Home Buyers, Info for Home Sellers, Info on Real Estate Transactions 0 Comments

In this video Henry Barr answers the questions that might come up when it comes to title work in a real estate transaction…

This is Henry with The Barr Team here at ReMax Properties of the Summit in Frisco, Colorado. Today I am going to talk a little bit about title work – what it is, who pays it, approximate cost on title work, etc. Title work is the work that is done to ensure that the title is clean when it is passed on from Seller to Buyer. The title company researches the title to find out if there are any liens and encumbrances against the property. And then they will prepare, what is called a title commitment. The title commitment will show you what is on the title policy, what is owed against the property and what encumbrances are against the property. The encumbrances can be things like covenants, bylaws, rules and regulations, easements, old patents and so forth. Most all properties will have some encumbrances against it, but that’s what your title work is for, to ensure that you have clear title subject to those recorded exceptions like easements and such. Title work in Colorado is customarily paid by the Seller but it can be paid by the Buyer as well. There is a form on the contract that allows either the Buyer or the Seller to pay for the title work. And then there will be a lender title policy, if you are getting a loan, that is customarily paid by the Buyer. I hope that answers some of your general questions on title work.