For your part as the buyer, your lender will require you to purchase a loan policy. The reason behind this is that the lender wants to be sure that they’re in “first lien position”—the highest priority if there were ever to be liquidation of the property. The title company acts as the third party in a real estate transaction and the middleman between your agent and lender.
If any work has been done on the property, making sure all the contractors have been paid so as to prevent any mechanic liens being placed on your property is also important. Your title company will be your safety net in this way as well.
Investors and builders partnered with Continental will file what’s known as a “Notice of Intended Sale,” which must be filed and recorded with the county the property is in. This notice alerts any contractors who did work on the property that they have 45 days to file a lien on it.
Due to the growing threat of wire fraud, Continental Title has spent hundreds of thousands of dollars on security so both buyers and sellers will be safe in the knowledge that no fraudulent activity will occur in their transaction.
I thank Valerie for taking the time to shed light on the title company’s role in a real estate transaction.
If you have further questions for Valerie, you can contact her at 816-468-6122, or feel free to reach out to me by phone at 816-651-5190 or email at Jason@KCHeartlandHomes.com. I look forward to hearing from you.