Buying Your Home
When it comes time to buy your new Boulder home – be it a condo, plex or single family home, there will be several entities involved. Your Realtor will help coordinate the transaction. A mortgage banker will finance the transaction. An inspector makes certain the home is in decent condition. The role of title company in home purchase is more involved. The title company ensures clear title – a clear chain of ownership. The title company prepares all the closing paperwork. The title company frequently holds the earnest money is trust.
What Is Title Insurance?
Title insurance protects you – the buyer – from flaws or defects in the title. There are certain exclusions to any title policy. Some are listed on the policy itself as exclusions. Others can occur adjacent to the closing. Here is an example of how a home can fail to close. More on “What is Title” here.
Who Holds The Earnest Money?
In Colorado, earnest money is generally held in trust by the listing office or title company. In fact, this is an important role of title company in home purchase in Boulder. Keep in mind, the earnest money shows good faith; it will be applied to closing or returned with a contract termination.
New For 2014
Starting in 2014, closing instructions will be executed by title companies at the time of the closing. The past several years, Realtors have been instructed to execute closing instructions at the time of an offer. The reason for the change? To ensure consumers are getting fair opportunities to select their own title company. Realtors can still recommend several reputable companies for buyers or sellers to select from.
Summing It All Up
In Boulder, the role of title company in home purchase is really diverse. It is important to select a reputable firm and get the best coverage to protect your investment. Read more about purchasing a home in today’s market here.
Example Of A Boulder Title Company
Land Title is one of the many title companies in Boulder. Check out their link here.