Clarksville - Ft. Campbell Area Information

Liens, Judgements, Closings, Escrow...

Here is a great post from Danny !

Most people in the real estate industry understand the importance of using a reputable title company. Many consumers however don't know what a title company actually does so they may also be unaware of why they are important. Liens, judgments, closings, escrow...these buzzwords that many consumers may have a passing knowledge of are very important when conducting a real estate transaction. Let's take a look at these four terms as examples of what a title company does and why it is important.

Liens and judgments are issues that affect title. According to dictionary.com title is defined as,

a.legal right to the possession of property, esp. real property.

b.the ground or evidence of such right.

c. the instrument constituting evidence of such right.

Liens, the legal claim of one person upon the property of another person to secure the payment of a debt or the satisfaction of an obligation (dictionary.com), and judgments, the obligation, esp. a debt, arising from a judicial decision (dictionary.com) can both directly affect title as they are often levied against it. Liens and judgments against a title mean that the it is not clear of other claims and will hamper most lenders from extending a mortgage. A title company will perform a title search to discover any liens or judgments against a property. This title work and its findings are then taken as true and correct by the lender. The veracity of the clear title and properly executed closing documents are backed up with title insurance. This title insurance helps to protect both the lender and the homeowner. 

Another important function of a title company is to oversee the execution of the closing documents. States have varying laws governing who may close a loan and recourse for advice given about the paperwork. In most states, the title company is responsible for verifying the identity of the people signing the documents and for receiving any funds specified on the HUD1.

Another important responsibility of title companies in most states is the holding of funds and dispersing of those funds according to the lender's instructions. Holding of funds is called escrow. Escrow is defined by dictionary.com as, a contract, deed, bond, or other written agreement deposited with a third person, by whom it is to be delivered to the grantee or promisee on the fulfillment of some condition. There are generally legal avenues that can be pursued against a title company if they fail to execute the duties for which they are retained. This legal recourse may be the only option available to a homeowner or lender if questions arise about title. These are just a few examples of what a title company does and why it is important to a real estate transaction.

 

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Think Clarksville * Think Fort Campbell * Think Real Estate * Think Roland

Roland Woodworth

Licensed in both Tennessee & Kentucky. Please don't keep me a secret, if you know anyone looking to BUY or SELL, Please send me their contact informtion and give them my name and number.

View my website at Clarksville Home Information or Fort Campbell Housing

 Roland Woodworth is a member of NAR's Short Sales & Foreclosure Resource

 

Roland Woodworth, REALTOR ® Q Realty

Call: 931-320-9411

E-Fax: 866-596-2172

  

Clarksville TN Homes For Sale, Clarksville TN - Roland Woodworth, REALTOR

I specialize in helping families relocate to and from the Clarksville, TN and Oak Grove, KY - Fort Campbell, KY and the surrounding areas. I have the tools to market your Home For Sale including New Construction, Short Sales, Foreclosures, Distressed Properties. I'm a US Army Verteran still serving the Clarksville, TN amd Ft Campbell, KY area. Looking to sell your home,give me a call at 931-320-9411

TN Lic # 273649  -  KY Lic # 57120

Q Realty

1812 Memorial Circle. Clarksville, TN 37043

Each Office is Independently Owned & Operated

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Comment balloon 0 commentsRoland Woodworth • July 12 2009 11:06AM
Liens, Judgements, Closings, Escrow…
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