Does the Title Company Prepare the Deed, and How Much Does It Cost?


It is the responsibility of a title firm, as implied by the name of the business, to verify that the title to a piece of real estate is in good standing and that no claims have been made against it. According to Zillow, a title business not only creates the necessary papers, including any relevant deeds, but also maintains escrow accounts, which are used to retain and distribute the monies necessary to change ownership of a property. Before deciding on a firm, it is important to conduct some research and get an estimate in good faith since prices may vary significantly from one title company to the next.

Changing Ownership

Even if you have entered into a legally binding agreement to purchase the property from its current owner, you will not be shown as the official owner of the property until the previous owner’s deed is recorded with the county in where the property is located. After an escrow has been opened at the title company – typically by your Realtor acting on your behalf – the title company will conduct a title search to verify that the person you are buying it from is the legal owner of the property. This is done to protect both parties involved in the transaction. Before they can produce the documentation that will transfer the title into your name, the firm does further checks to ensure that there are no liens or other complications related with the title.

Insuring the Title

According to Rocket Mortgage, if you intend to use a mortgage to finance the purchase of the property, the lender will require that you purchase a title insurance policy. This policy safeguards the lender against any third parties, such as contractors or other parties, who may later stake a claim to the property’s ownership. Investing in an owner’s title coverage is another smart move since it shields you against any challenges to your ownership of the property.

The New Deed

A deed will be drawn up that lists you as the new owner of the property, and both you and the seller will sign it. The legal description of the property, the name of the existing owner written exactly as it appears on the previous ownership document, and the name of the new owner are all included in the deed (s). The signatures of all parties involved are notarized by the escrow agent working for the title business, and then the deed is sent by the title company by courier to the office of the county recorder, where it is registered. After that, you will be the legitimate owner of the item.

Types of Deeds

The Grant Deed, which is also known as a Special Warranty Deed, is the kind of deed that is used the most often in the San Francisco region and across the state of California as a whole. You get an interest in the land from the previous owner, and it may contain exclusions like an easement as well as a gift of ownership. In certain areas, you may be required to sign a Warranty Deed, which declares that you guarantee the property is clear of any liens or claims to ownership.

The Deed of Trust

You will be required to sign a deed of trust in order for the lender to provide financing for the purchase of your new house. This document acts as collateral for the loan. This deed is typically prepared by the mortgage company as part of the loan package and then sent to the title firm for you to sign at the closing. Until the loan is paid off in full, the legal title to the property is often held by the title firm, which also serves in the capacity of trustee to the deed. Typically, the trust deed must be signed by the lender, the title agent, and the borrower.