A title company plays a tremendous role in Real Estate transactions in Arizona when discussing buying or selling property. They are the ones in charge of all of the monies handled between the buyer, seller, Brokers, and Realtors. They are in charge of transferring the title of a home from one party to another. Title companies are the ones who put the property in your name.
A Realtors first step after getting an excepted contract in Arizona is to open escrow with the title company. The buyer and seller agree in the purchase contract who the title company is going to be. Once this is determined, it is usually the buyers Realtor who opens escrow because the buyer is the one putting up earnest money to be lost in case the contract is breached.
Opening escrow means, delivering an excepted purchase contract with the buyers earnest money to the title company. Once this is done, escrow is opened, and that is the beginning of the purchase contract.
Title companies in Arizona are the ones who receive the money from the buyer or the buyers lender to give to the seller and/or payoff the sellers lender. The seller must provide who their current mortgage is through so that the title company can pay off the balance of your loan. After the loan is paid off, and the closing costs, the seller gets what is left over which is called the sellers proceeds. However, if a the person selling has no mortgage there is nothing to pay off except closing costs.
There is paperwork that the buyer and the seller need to sign in order to successfully complete a Real Estate purchase contract. The title company organizes the paper work in an orderly fashion, and has both the buyer and the seller come to the office to sign. Once all paper work is signed by both parties, the title company delivers the paperwork to the bank that is funding the loan. The bank which the buyers lender obtained a loan for the buyer, wires the money to the title company. This is when all monies are dispersed to the appropriate party. The title company gets the money from the lender, then delivers the money to pay the Realtors, the Loan Officers (if applicable), the seller, and any other party that requires compensation for being a part of the sale. Of course, the title company takes a cut. Usually the closing costs are split between the buyer and seller depending on the terms of the contract.
A title company is the battery of the operation, the hub. With out their organization there would be too much confusion. If you do not know a good title company to use when purchasing or selling Real Estate in Arizona, please ask a qualified professional Realtor to suggest one. The title company deals with every person involved in the transaction. It is important that a title company has organization, and great communication skills. A good title company will notify the appropriate party when something may be wrong so that it may be fixed by the right person.
It is important to develop a relationship with a good title company. Once a relationship is built, you begin to know how each works, making the job a little easier. You will know the title companies phone numbers, names, fax numbers, and e-mail addresses by heart. If you are always using a different title company, it is a new set of information to learn.
Tenancy in common is now a popular method in acquiring real estate properties, whether for business or residential purposes. Tenancy in Common or TIC is the method of acquiring real estate properties with other individuals as a joint venture. The shares are not necessarily equal with the rest, but will depend on the investments of each individual for that acquisition.
The joint venture is quite appealing to business individuals due to the prospect of less risk. Since the investments, earnings, profits, and expenses are all shared by everyone; the financial burdens would be segregated as not to burden the different parties concerned.
Another factor for its popularity is due to the possibility of maximizing profits with your fixed financial budget. Acquiring multiple real estate properties with your group can increase profit, unlike purchasing a single property on your which will take up most of your budget. This way, TIC can offer a bigger possibility of profit and capital gains to be had along with your partners.
Title Companies and Closing Agents
But as with business, tenancy in common processes is quite tedious and complicated especially those who don't know anything about it. Various professionals like title companies and closing agents can rent out their services to simplify the complex tenancy in common processes that you will have to face.
Title companies is just one of the tenancy in common process that a joint venture should inquire to get the business started. Their professional aid can handle any complex transactions for TIC without wasting time and money.
These title companies will search out facts about the property in the form of an "abstract of title". These titles will incorporate important information such as: 1) the rightful legal owner of the property you wish to acquire; and 2) determine legal information regarding it, which includes leases, mortgage loans, and so on.
Upon completion of the abstract, the title company will now issue a "title opinion letter" to the buyer or the lender, depending on who initiated their services. Once all these tenancy in common processes are done, the closing agent will handle all the paper works and requirements to close the deal.
Closing agents will act as an intermediary between the title company and the buyer/lender, as well as the seller of the property. Signing of papers, exchanging necessary documents, payment schemes, rights, fees, and so on will be handled by them. This is usually done when the agent will issue a closing statement with the following information: 1) charges of the mortgage lender (if any), 2) charges for preparing the documents involved during the tenancy in common process, 3) fees of both the closing agent and the title company, 4) taxes, real estate or any legal fees incurred during the transactions.
One all the parties have signed and approved of all the proceedings, the title company will then follow up on the final tenancy in common process to record any legal documents at the county courthouse and return the significant documents to the parties concerned.
It is true that the advantages of TIC is quite desirable to the average entrepreneur, but with the complexity of the tenancy in common processes, the invaluable services of the title companies and closing agents are worth the additional costs.
Both Nicholas Mcconnell & Kathryn Landry are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Nicholas Mcconnell has sinced written about articles on various topics from Arizona Property, Home Buyers Guide and Arizona Property. Executive Sales Associate for Coldwell Banker Residential Brokerage in Scottsdale, Arizona. Lived in Arizona all his life, Graduated from Northern Arizona State University and has been a Realtor ever since.. Nicholas Mcconnell's top article generates over 14800 views. to your Favourites.
Kathryn Landry has sinced written about articles on various topics from tax, Investments and Tax. Kathryn R. Landry is a business writer for . A company that can give you the most complete information on a 1031 exchange or TIC property ownership.. Kathryn Landry's top article generates over 8100 views. to your Favourites.