What is going to happen? I have not written for a long time and I am happy to return, hoping you will see a lot more ...
What is going to happen?
I have not written for a long time and I am happy to be back, hoping you will see many more posts in the near future.
So today I will talk to you about the title companies, recently I came across a lot of questions about the meaning of the company, what does it do? What is her responsibility? What are its limitations? and so'..
From the many conversations with new and veteran investors, I understood that the perception of the meaning of the company is wrong in most circles, whether it is a lack of knowledge or misinformation from other companies.
So let's start from the beginning. The role of the Teitel company is to coordinate the closing between the various parties involved, coordination between the buyer, the seller, the insurance company that insures the teitel and various lenders if necessary. Teitel is an external company that complies with its requirements and procedures and the area in which it operates without direct working relations with the seller or buyer.
The company is not a lawyer or an insurance company. It is a company that provides services to all those involved (at least for the most part).
We will review the progress of the transaction with a description of Teitel's role and its significance
Offers / period checked / deposits:
Each transaction begins with an offer and the signing of a sales contract, already in the contract the details of the title company will be specified, with the choice usually being made by the seller. The contract of sale will specify all the terms of the transaction and the requirements with the title company (are additional reports required? Should permits and offenses be checked with the district? When should the buyer transfer a deposit? When is the closing date? Is the transaction made in cash, etc.
When the agreement is signed, Teitel accepts the contract and starts working on it. Usually, the tests will not begin until close to the closing date. Therefore, at this stage the company will act as a trust account for everything.
Preparing to close:
The closing is nearing and the agreement has not been canceled. The Teitel company will begin testing the asset's Teitel (taboo). Are there liens? Foreclosures? Or relevant records on the property in archives (public records) It is important to understand that the test is performed for insurance purposes only. The goal of the company is to make sure the Teitel is clean and pass the examination to the insurance companies that will decide whether or not the property can be insured. The Company acts as a representative of the insurance company and after approval of the insurance, the Company issues a commitment to the policy that will be offered on the closing day.
In addition, at this stage the Teitel will perform additional tests at the request of the seller / buyer appearing in the agreement or written in writing, such as checking offenses against the municipality, checking open parameters, checking open accounts, etc.
Finally, the title company will issue a closing balance sheet, a table summarizing all the details of the transaction in which the names of the parties and their details, purchase costs, amount of deposit deposited, final closing costs, and additional reporting costs will be stated. Also, in this report we will see all the offsets between the buyer and the seller, such as property tax, to the neighborhood, property tax debts / accounts, etc.
This is the first part of the Teitel company.
In the next chapter, the choice of Teitel fixed, closing on the property, tips and warnings to conduct against the Teitel, and how to achieve savings on the one hand and maximum security on the other hand in smart work against the various Teitel companies.
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