If you’re in the process of buying or selling a home, chances are, you’ve run into some questions along the way. This is one of the many reasons why your Realtor® plays a valuable role each step of the way. One of your questions may have been what role the title company will play in your purchase or sale. In Clark County, escrow and title services are completed through the same company, but each department has different roles and tasks. Here is some helpful information that can help clarify what the title company does as well as what the differences are between escrow and title.
At the time your property is listed, thorough agents will request a preliminary title report. This will show loans, taxes (property and excise), certain kinds of personal debt (tax liens/back child support), which must be paid when the sale is completed. Of course, the total of these should be less than the purchase price of the home.
In addition, easements, road maintenance agreements, HOA information, and CC&R’s will also be on the report. These are examples of items that will stick with the property. Reading the title report will allow your Realtor® to know about any trouble spots that come with the property before closing happens. Once there is an accepted offer, the buyer and the lender are added to supplemental reports.
Escrow includes collecting all necessary documentation to allow the property to transfer over to the new owner. Escrow also will pay off underlying encumbrances (ie. Liens on the property), will place new encumbrances, and make the property transfer with the County. The escrow team will work up the costs for both seller and buyer, including pro-rated property taxes, pro-rated HOA dues, costs from the buyer’s lender, and closing utility bills that could become liens on the property (water and sewer).
While each real estate transaction is different, there are still some basic action items that need to happen with each one. The title and escrow company play a crucial role in the closing process. I will help walk you through the various steps to make sure you understand what you need to do.
We’re officially into 2018 now and it’s a great time to buy or sell your home. Contact me today to explore how to get the ball rolling.