Do you know what to expect from your title company as an investor in Kansas City? Learn more about how it all works in our latest post below!
As an investor in Kansas City, you should have a good idea of what to expect from your title company and what they are actually doing for you. A title company has a number of duties and responsibilities when helping local homeowners and investors in their real estate transactions and providing good and up to date communication is key to building a long-lasting relationship. In fact, the process couldn’t be completed without them. Below, we will discuss what they do, what to expect, and how they can help you.
What They Do
A title company takes a thorough look at the sales history of the property to make sure past issues, such as old property liens, are cleared up so that ownership claims don’t become an issue in the near future. They ensure that the property being sold can be sold free and clear. Their work is insured, meaning if a claim should arise in the future that you weren’t aware of, you won’t have to worry about the liability falling on you. Your title policy will indemnify you from any claims made against you down the road, helping you to avoid problems in the future.
First, the title company will perform a search to look for liens or claims on the property. They will utilize public records to find any past mortgages, tax problems, judgments, or any other restriction that could have an effect on the property ownership. In some cases, a title company will order a survey of the property to determine the property line, looking for any encroachments. These can sometimes pop up when you are looking at much older properties when things were built before the strictest of rules were in place. The last thing you want is to find out that your driveway is actually someone else’s or that a nice shed that was just built in the backyard, is actually on the neighbors land.
If all goes to plan, the title company will issue a policy, ensuring the property is being sold free and clear from a buyer to a seller.
How They Can Help
Title companies offer an abundance of information regarding local properties. They can provide you with the complete sales history, let you know when properties are paid off, and provide information about the community to help you make more informed buying decisions. Having a good title company on your side can mean the difference between a smooth process and a whole lot of headache!
While often overlooked, title companies can be a huge resource for both buyers and sellers in the Kansas City area. You should, however, know what to expect from your title company. Want more information check out NapkinFinance
Traditional buyers and investors are looking for two completely different outcomes and so need to follow some different steps to achieve their goals. A title company that specializes in working with investors, in particular, can be a huge asset. They will know what you are trying to accomplish, and what you need to look for. They will get you all the answers you need for a property and will help you to simplify and speed up the process so that you are able to buy and sell more properties in a relatively short amount of time.
The Time Line
A title company will generally deliver a policy in about two weeks’ time, however, this timeline can change depending on the situation. Thorough research will need to be done on the property to ensure there are no other claims, liens, or items that will hinder a sale. The title company will do a title search and work to clear any clouds on the title. Clouds are things such as liens, levies, and other encumbrances. An experienced title company will be able to take care of all these items in a fast and efficient manner. Though if a property has several questionable items in its history, it could slow down the process a bit or even make it come to a screeching halt. It is better to have this sorted out though before you put your name on any final paperwork and your money down on the table.
Working with a title company in Kansas City will typically cost 1-5% of your loan amount. This is a small amount compared to what it could cost you for not having title insurance to back you up.
You will need to factor in the policy costs, escrow and signing fees, courier and delivery fees, appraisals, filing fee, attorney prep fees, and more. As an investor, it’s important to know what these costs will be before working with the title company. You don’t want to find that you are spending more money than you should be on the process.
What You Need To Do
You’ll need to provide accurate information about yourself and the property in a timely manner and keep those lines of communication WIDE open. You need to be available to answer any questions and find solutions for any clouds on the title as quickly as possible to keep the process moving forward. As an investor, it can be risky taking on somebody else’s liens or costs. Having these items taken care of beforehand will save you a lot of time, money, and headaches.
Keep in mind, that not all title companies are the same. While they all need to operate in a legal manner, some will be more willing to help you than others. A great title company will go above and beyond for their clients and those are the ones you want to stick with. By law, they can not take money from you or provide you with money in exchange for deals, but there are a number of other ways to help each other out.
When you develop a relationship with the title company you trust, referring business to each other can be a great perk. They will know what you need, what you are looking for, and how quickly you need them to move. They will offer you great service in exchange for your returned business. Some title companies we have worked with include: Secured Title , Clear Title, and Coffelt Land Title.