Frequently Asked Questions

What does a title company do?

A title company plays a vital role in ensuring that every real estate transaction is accurate, secure, and legally sound. We research property records to confirm ownership, identify any liens or title issues, and make sure the title can be transferred from one party to another without legal or financial risk.

Title companies manage and disburse funds, coordinating with all parties involved in a closing or construction project. We also issue title insurance, which protects property owners and lenders from future claims or disputes, providing confidence and peace of mind in every transaction.

Questions About Title and Title Insurance:

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What is title insurance?

Title insurance protects homeowners and lenders from financial loss due to issues with a property’s title. These issues can include:

Ownership disputes
Unpaid liens or taxes
Forgery and fraud
Errors in the public record
Unknown or undiscovered heirs of previous owners
Unrecorded easements and encroachments

Title insurance policies protect from problems or hidden risks that existed before the policy was issued but does not protect against future issues caused by the property owner after purchase.

What is a title?

A title is the legal right to own, use, and sell property. Holding title to a property means that you have recognized legal ownership of that property.

If the title company conducts a thorough search, why would someone still need title insurance?

Without title insurance, homeowners risk paying for unpaid mortgages, taxes, or contractor bills attached to their new property. Ownership disputes from unknown heirs, previous owners, forged documents, and errors in public record can cost thousands of dollars to dispute in court. Title insurance removes the liability from the homeowner, and protects them from these financial risks.

What is a title search?

A title search is a review of public records to verify past ownership, ensuring a clear “chain of title” as well as checking for unpaid liens attached to the property. Examiners conducting the search ensure that the title is clear and ready for transfer. The goal of a title search is to eliminate any future risk of ownership disputes, financial risks, or legal issues.

Who pays for title insurance?

As the protected party, home buyers generally pay for the title insurance.

How long does a title insurance policy last?

Owner’s title insurance doesn’t expire for as long as the policy holder still owns the property. Lender’s title insurance expires when the mortgage is paid off, as it only protects the lender’s interest in the property.

Questions about Closing:

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What happens during the closing process?

The closing is the final step in your real estate transaction. During this process, all documents are reviewed and signed, funds are disbursed, and ownership of the property is officially transferred. Our team coordinates every detail to ensure a smooth, timely closing.

How long does closing take?

Most closings take about an hour but can vary depending on the complexity of the transaction. Our team works closely with all parties to keep the process on schedule and stress-free.

Who comes to closing?

Typically, the buyer, seller, their realtors, and a closing agent (like an escrow officer) are present at closing. Depending on the transaction, lenders and attorneys may also attend.

What should I bring to my closing?

Bring a valid government-issued photo ID and any documents your lender or realtor has requested. If you’re bringing funds to close, these must be in the form of a cashier’s check or sent via wire transfer.

Why do I need to fill out a payoff authorization?

A payoff authorization form gives the title company permission to contact your current lender and request the exact amount needed to pay off your existing mortgage or loan at closing. This ensures that all debts tied to the property are properly released so the new owner receives a clear title. Without your written authorization, lenders are not legally allowed to share your loan information. Completing this form helps us protect your privacy while making sure your transaction is handled accurately and efficiently.

What is wire fraud?

Wire fraud is a growing risk in real estate transactions. Criminals impersonate trusted parties such as your lender, realtor, or title company in an attempt to divert funds into their own accounts. The messages often look legitimate and may even use real names, logos, or email addresses that appear familiar. For more information on how Legal Land Title keeps you safe from wire fraud, visit our Cyber Security page.

Questions about Construction Disbursement:

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Why should I use Legal Land Title for my construction disbursement?

At Legal Land Title, we take the stress out of managing construction funds. Our team handles 1099s and W-9s for all subcontractors, works closely with lenders and investors to manage your funds, and fields calls and questions so you can focus on building- not paperwork. Plus, our secure systems and strong fraud protection measures keep your funds and information safe, no matter the size or scope of your project.

What is a construction draw?

A construction draw is a payment made to a builder or contractor as work progresses on a construction project. Instead of receiving the full amount upfront, funds are released in stages (or “draws”) based on completed milestones, such as the foundation, framing, or final inspection. At Legal Land Title, we manage this process to ensure funds are distributed accurately and on time. Each draw request is reviewed for approval, verifying that work is complete and aligns with lender or investor requirements. This careful oversight protects everyone builders, lenders, and property owners while helping to keep the project on schedule and within budget.

How often can I do a new draw?

There are no limits to how often you can request a draw. There’s no strict schedule, but each draw should align with project milestones and lender requirements. At Legal Land Title, we process all draws promptly to keep your project moving without unnecessary delays.

What is a 1031 Exchange?

A 1031 exchange allows real estate investors to defer paying capital gains taxes when they sell one investment property and purchase another of equal or greater value. This exchange must meet specific IRS requirements and timelines to qualify. At Legal Land Title, we coordinate with qualified intermediaries and all parties involved to ensure that your 1031 exchange is handled properly and in compliance with federal regulations.

Still have questions?

We’re happy to walk you through every step of your transaction. Contact us anytime!

Frequently Asked Questions