What does a title insurance company do? I get this question a lot here at Scarab Title & Escrow Services. There are many answers to this question as Tampa area title insurance companies do a lot. The primary task, as a title insurance company, is to ensure that a thorough and complete title search is done so that a valid title insurance policy can be issued. It’s that simple. They are mostly an insurance agent very similar to a homeowner (or car) insurance agent that issues an insurance policy for an insurance carrier.
With that in mind, there are many other services a title company may offer as a courtesy to the buyer and seller, for instance, act as an escrow agent. Most real estate transactions involve deposits to show good faith intent, and a title company can act as an escrow agent holding the EMD and any other funds. The title insurance company then ensures that those funds are distributed to the correct party at the proper time.
Another service a title company may provide is closing services. After a title search, a title company often will offer notary services, lender collaboration, along with many other services relating to the closing of a real estate transaction. It is usually more convenient and affordable to utilize these extra services offered by title companies rather than third party alternatives. At Scarab Title, we offer several convenient closing services, including mobile closings (we come to you), online closings, and virtual closings.
It is important to note that these extra services are usually offered as a courtesy. These services are not required of the title company.
A good title company is a source of great information and knowledge. They initiate and complete the title search, navigate the lender paperwork process, ensure the transfer of real property is completed correctly, assist with the distribution of proceeds, and much much more.
At the end of the day, a title company can provide many services to streamline the home buying or selling process. Here at Scarab Title & Escrow Services, we work hard to give our clients the best and most secure closing experience possible.