Title and Escrow companies serve two functions in real estate transactions.

1. The Title Company

A title company is responsible for examining the actual title to a piece of real estate.  The purpose of the search is to make sure the person selling the property has the right to do so and the person acquiring the property is receiving a clean title.  State Title is diligent in reviewing the title to properties, identifying any issues that may exist, and resolving these issues prior to the sale.  The Title Company also issues title insurance to protect the lender and/or purchaser from any challenges or issues with the title to the property.

1. The Escrow Company:

Buying or selling real estate usually involves the transfer of large sums of money.  An Escrow company serves as a neutral third party to handle the transfer of funds and related documents between the parties involved in the real estate transaction.  State Title works with the buyer, seller, and lender to make sure that all elements of the contract and conditions of loans are met, then disburses the funds to the necessary parties.  It is essential that all conditions of the sale are met before the property and money change hands. State Title impartially carries out the written instructions given by the principals (buyer, seller, and lender). This includes receiving funds and documents necessary to comply with those instructions, completing or obtaining required forms, and handling the final delivery of all items to the proper parties upon the successful completion of the escrow.

Though the entire closing process has many working parts, a brief summary will provide some insight.

1. Once a Contract to buy and sell is executed between the parties, the closing process begins.  The contract will outline the details of the sales, the period for which the transaction is to be completed, and all other conditions or requirements for the buyer and seller relative to completing the transaction.
2. State Title receives the contract and begins working with the buyer and seller (agents and lenders if applicable) to obtain their information and the property information.
3. State Title reviews the title to the property contained in the public records of the Parish where the property is located to ensure that there are no issues affecting the title.  This allows State Title to issue policies of title insurance to protect the interest of both lenders and purchasers.
4. Once all conditions are met, inspections complete, and all title issues resolved, State Title prepares all the transfer documents and works with lenders, if applicable, to ensure that all of their requirements and documents are provided.
5. On the day of closing, State Title receives the funds from the purchaser (or lender), coordinates, witness, and notarize all transfer documents.  Once all of the documents are proper and complete, State Title pays off all outstanding liens, such as an existing mortgage of the seller, and issues the remaining funds to the seller.
6. State Title assures all documents are properly recorded in the conveyance records for the Parish where the property is located.

Title insurance, like all other insurance, is purchased to protect you when and if you need it.  Title insurance protects property owners from any defects in the title of real estate or challenges to the title that may occur in the future.  Real estate litigation is costly and burdensome, title insurance protects your investment in real estate and protects you against the future unknowns.