What is a Title Company? Understanding Their Role in Real Estate Transactions

Before diving into what exactly a title company is and its functions, I should give some context as to why we entered the title and escrow business in the first place. 

We have always been real estate-heavy regarding our investment strategy and portfolio composition. Years ago, we saw an opportunity to increase the returns on our real estate investments by lowering acquisition and disposition costs. Title and title-related services being provided by 3rd party companies were reducing investment returns. For this reason, the decision was made to start a title company and mitigate the impact these costs were having on our investments. 

Not long after the title company was established, we started seeing contracts where our company was listed as the title and escrow agent. These contracts were unrelated to our investment activities. We went from establishing the title company as a loss leader to a profitable, standalone service provider within the South Florida real estate community. The volume of contracts unrelated to our investment activities continued to increase, and the decision was made to repurpose the title company. Soon after, Allegiant Title merged with Sun Trust Title.

What Does a Title Company Do?

Now, let's talk about what precisely a title company does. 

When buying or selling a home, there are many moving parts: agents, title searches, escrowed funds, municipal lien searches, inspections, paperwork, and finances, just to name a few. 

A title company is a gatekeeper for your real estate transaction. It plays a pivotal role in ensuring everything runs smoothly regarding the legal aspects of property ownership. In most transactions, the title company will act as both escrow and title agent.

The Difference between an Escrow and a Title Agent

As the escrow agent, the title company will act as a neutral third-party entity that holds funds, documents, and assets related to the transaction until both parties have satisfied their contractual obligations and the sale can be closed. 

As the title agent, the title company will conduct an in-depth examination of historical records to ensure no hidden claims, liens, or encumbrances could jeopardize your ownership. They leave no stone unturned, so you don’t have to worry about surprises down the road, and that there will not be any unexpected legal disputes over your new home or investment property.

How Does Sun Trust Title Shield Clients from Future Legal Claims?

Sun Trust Title offers a comprehensive title insurance policy to further protect your investment through our title underwriter, which shields you and your lender from future legal claims or disputes over the property. The title policy will defend and mitigate financial losses if a claim arises. 

In general, a title insurance policy will defend claims and cover losses from an underlying ownership issue related to a property’s title that may have been overlooked prior to the date you purchased your home or investment property. 

For instance, errors and disputes involving survey errors, boundary disputes, deed errors, municipal code violations by a previous owner, estate disputes, conflicting wills, forged or altered documents, construction liens, tax liens, encroachments, and improperly recorded documents would be a covered claim.

At Sun Trust Title, we pride ourselves on providing comprehensive title services that protect your interests, whether you're buying, selling, or refinancing. Our expert team can handle the complexities of title searches, insurance, and closing so you can focus on what matters most—making your real estate dreams a reality.

Ready to experience hassle-free real estate transactions? Contact Sun Trust Title today to get started! Visit us at our Miami Beach office at 1000 5th Street, Suite 1315, or in Ft. Lauderdale at 3201 W. Commercial Blvd., Suite 212. You can also call us at (305) 735-6531 for Miami Beach or (954) 354-9100 for Ft. Lauderdale. Let us guide you through the process with confidence and expertise!

References

1. Pike Title. "Understanding the Role of Title Companies in Real Estate Transactions." Pike Title, 23 Mar. 2023, www.piketitle.com/post/understanding-the-role-of-title-companies-in-real-estate-transactions.

2. Marina Title. "The Role of Title Companies in Real Estate Transactions." Marina Title, 2023, marinatitle.com/the-role-of-title-companies-in-real-estate-transactions/.

3. Kowal, Brian. "What Does a Title Company Do?" Brian Kowal Law, 15 Feb. 2023, briankowallaw.com/blog/what-does-a-title-company-do/.

4. Experian. "What Does a Title Company Do?" Ask Experian, 2023, www.experian.com/blogs/ask-experian/what-does-title-company-do/.

5. Title Resources. "Importance of Title Services in Real Estate Transactions." Title Resources, 2023, titleresourcesinc.com/importance-of-title-services-in-real-estate-transactions/.

6. Corinthian Title. "The Role of the Title Company in Real Estate Transactions." Corinthian Title, 2023, corinthiantitle.com/blog/the-role-of-the-title-company-in-real-estate-transactions. 

7. Bankrate. "Title Company Services." Bankrate, 2023, www.bankrate.com/real-estate/title-company-services/. 

8. Rocket Mortgage. "Title Company Services." Rocket Mortgage, 2023, www.rocketmortgage.ca.

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