Title insurance is actually a process, with the insurance policy being the end product. This process starts with a comprehensive search of public records to determine if any liens or other encumbrances are attached to the title. During the search, detailed information from many sources is gathered and reviewed, including tax records, federal, state and local records, court judgments, deeds and an evaluation of whether the property characteristics are accurately reflected by the information on the title. Not surprisingly, one in four title searches uncovers some problem that must be rectified prior to the closing. The end result is that the buyer is receiving clear title to the property.
When homebuyers are approved to purchase a property, they are bombarded with a great deal of information and must make some very important decisions as part of the closing process. One critical decision is determining who will handle the financial aspects of their real estate transaction to ensure all parties are properly allocated their portion of the costs and receive accurate cash proceeds.
What sounds like a simple accounting process, however, can be immensely complicated depending on the state, the type of real estate transaction and the potential issues that must be resolved before closing can occur. Not only must this assigned third party handle and manage potentially large sums of money on behalf of the parties to the transaction, but they must also make sure every detail of the closing is correct and accurately reflects the intention of each participant.
Before a home buyer can actually close on his/her property, a great deal of documentation is required by the lender and includes everything from the sales contract and loan application, buyer credit history, property appraisal and flood zone determination to the title search report.
Throughout the mortgage process, the lender, seller and buyer incur costs associated with the real estate transaction that must be "settled" at the closing. A multi-party financial transaction also occurs when the lender loans funds to the home buyer and the home buyer then "settles" with the seller by transferring the agreed upon funds to that party.
Who Can Provide Escrow/Settlement/Closing Services?
The kind of company that can manage this process - called escrow closings in some Western states and real estate settlements or real estate closings in the rest of the U.S. - is dictated by state law and can vary a great deal from state to state. It can be title insurance companies, underwritten title companies, independent escrow companies, real estate brokers, attorneys and financial institutions.
In most states, title insurance and underwritten title companies are a good choice since they have no financial stake in the real estate transaction itself and can act as a "disinterested third party." Since these firms usually order the title search and make sure all encumbrances to the title are resolved prior to closing, they are an economical choice for also managing the entire closing process.
In the closing process the closer will:
The Value of a Third-Party Closing Expert
For most people, buying a home is one of the largest financial transactions they are involved in. They want to be confident that every aspect of the closing process is handled professionally and precisely.
Having an experienced, disinterested third-party closing expert managing the process enables a smooth, accurate closing that will properly reflect the intent of all the participants to the deal. Both the seller and the buyer can walk away from the closing table with assurance and peace-of-mind that their real estate agreement was executed with the proper due diligence, regulatory compliance and financial accuracy.
Usually the seller of the property needs to provide clear title to the buyer and chooses the title insurance company.
CBT experienced staff works with sellers, buyers real estate agents, lenders, attorneys, etc., to produce your title insurance policy.
Although title insurance premiums are regulated by the State of Wisconsin, you want to be sure you’re getting all the discounts to which you’re entitled.
For example, if you have a prior title insurance policy for your purchase of the property you can get a discount on your new policy. Also, you can get a discount when you refinance your property.
How Do I Order Title Insurance From CBT?
Email or call one of our helpful staff members if you have any questions about fees or the title insurance process.
You can order online or by talking to one of our helpful staff members.
For an "Estimate" of your Title Insurance cost Click on the following:
For a Title Insurance quote please call 715-682-6060.
When Should I Order Title Insurance From CBT?
An order for Title Insurance is usually placed when you sign your "Offer to Purchase" agreement. Tell your Real Estate Agent you want CHEQUAMEGON BAY TITLE to do your title work.
If you are refinancing your Lender will place the order for Title Insurance. Tell your Lender you want CHEQUAMEGON BAY TITLE to do your title work.
If you are not using a Real Estate Agent you should order your Title Insurance when you have a signed agreement for the sale. Please place your order with CHEQUAMEGON BAY TITLE.