Do you know what to expect from your title company as an investor in New York? Learn more about how it all works in our latest post!
As an investor in New York, you should have a good idea of what your title company is actually doing for you. A title company has a number of duties and responsibilities when helping local homeowners and investors in their real estate transactions. In fact, the process couldn’t be completed without them. Below, we will discuss what they do, what you can expect, and how they can help you.
What They Do
A title company takes a thorough look at the sales history of the property. They look for things like past liens or any other potential ownership claims to the property. They ensure that the property being sold is free of these things so it can be sold free and clear. Their work is insured, meaning if a claim should arise in the future that you weren’t aware of, you won’t have to worry about the liability falling on you. Your title policy will indemnify you from any claims made against you down the road, helping you avoid problems in the future.
First, the title company will perform a search to look for liens or claims on the property. They will utilize public records to find any past mortgages, tax problems, judgments, or any other restriction that could have an effect on the property ownership. In some cases, a title company will order a survey of the property to determine the property line, looking for any encroachments.
If all goes good and well, the title company will issue a policy, ensuring the property is being sold free and clear from a buyer to a seller.
How They Can Help
Title companies offer an abundance of information regarding local properties. They can provide you with sales history, let you know when properties are paid off, and provide information about the community to help you make more informed buying decisions. While often overlooked, title companies can be a huge resource for both people buying and selling a home in the New York area.
A title company that specializes in working with property investors can be a huge asset. They will know what you are trying to accomplish, and what you need to look for. They will operate in a fast and efficient manner, helping you to get all of the answers you need for a property. They will help to simplify the process so that you are able to buy and sell more properties in a relatively short amount of time.
The Time Line
A title company will typically deliver a policy in about two weeks, however, this timeline can change depending on the situation. Thorough research will need to be done on the property to ensure there are no other claims, liens, or items that will hinder a sale. The title company will do a title search and work to clear any clouds on the title. Clouds are things such as liens, levies, and other encumbrances. An experienced title company will be able to take care of all these items in a fast and efficient manner.
Working with a title company in New York will typically cost 1-5% of your loan amount. You will need to factor in the policy costs, escrow and signing fees, courier and delivery fees, appraisals, filing fee, attorney prep fees, and more. As an investor, it’s important to know what these costs will be before working with the title company. You don’t want to find that you are spending more money than you should be on the process.
What You Need To Do
You need to provide accurate information about yourself and the property in a timely manner. You need to be available to answer any questions and find solutions for any clouds on the title. As an investor, it can be risky taking on somebody else’s liens or costs. Having these items taken care of beforehand will save you a lot of time, money, and headaches.
Keep in mind, that not all title companies are the same. While they all need to operate in a legal manner, some will be more willing to help you than others. By law, they can not take money from you or provide you with money in exchange for deals, but there are a number of other ways to help each other out. When you develop a relationship with the title company you trust, referring business to each other can be a great perk. They will know what you need, what you are looking for, and how quickly you need them to move. They will offer you great service in exchange for your returned business.
Learn more about what to expect from your title company as an investor in New York! Call now for more info! (914) 559-2579