Joint title and closing company

Surprising Advantages to Using a Title & Closing Company

Dec 15, 2021 Realtor Resources , Title Insurance Share:

In Birmingham, it’s unusual to find a title company that also handles real estate closings.

Typically, a real estate agent will use a title company and a separate closing attorney to handle the closing details. And while it may seem logical to keep title and closing separate, there are actually several advantages to having your title and closing company in the same place.

What's the purpose of a title company?

The role of a title company is to perform a title search and to provide title insurance for lenders and homebuyers. A title search is used to verify that the seller has the right to sell their home and that the buyer will have a clear title. Through a title search, a title company establishes a clear chain of title and identifies any potential issues with the title such as outstanding liens or unpaid taxes. These issues must be addressed to complete the sale and issue title insurance to the lender and the homeowner.

The title company works as a neutral third party, serving both the lender and the buyer. Additionally, title work is separate from the closing. In many cases, another party, such as a closing attorney, will handle the closing.

What's the purpose of a closing company?

Like a title company, a closing company serves as a neutral third party that works to finalize the sale of a home. A closing company prepares all of the documents required for closing, including documents related to the title. On closing day, the closing company collects all necessary signatures to complete the sale of the home. At closing, the seller transfers ownership to the buyer and delivers the keys to the home.

The closing company will also record the home sale with the county, pay off existing mortgages and liens, and conduct other post-closing duties. You do not have to use a closing company to close on a home. Many closing attorneys operate independently of a particular closing company.

Should title and closing be kept separate?

Although title companies and closing companies have different functions, their interests are not in competition with one another. Both the title agent and the closing company have the same goal: to ensure that the sale of a home is conducted legally and without issues.

But it’s important to note that a title and closing company actually operates as two different entities under one roof. The title work occurs separately from the closing work and is performed by different individuals. For example, closers are not involved with a title search. But when the two companies coexist, their work is enhanced and it provides a better title and closing experience for everyone who is involved.

Advantage #1: Better Communication

When the title and closing work is performed by the same company, it simplifies and improves communication. If something is unclear or missing in the title documentation, it’s very easy for a closer to get quick answers; they simply need to walk down the hall to talk with an underwriter rather than wait on a phone call. Any changes that may occur can be easily communicated between the two groups.

Although they work separately, there is a sense of teamwork and cooperation between those who do the title work and those who handle the closing. Occasionally, there are questions about the title at the closing table. When the title company is just down the hall, it’s easy to get those questions answered immediately.

Advantage #2: Convenience

When you work with a title and closing company, it’s much more convenient for both agents and homeowners. While closing delays happen because title packages haven’t been received from the title company, these delays just don’t happen with a combined title and closing company. This setup also speeds up the process of getting the title policy after closing since there are no delivery delays.

It’s also more convenient for agents who use a title and closing company. Agents are busy and juggling multiple responsibilities and contacts. When the title and closing are in one place, agents only have one contact they need to remember for that sale. Agents also don’t need to worry about whether they’ve ordered the right thing from the right place when it’s all in one location.

This convenience is also passed on to the homebuyers. Many homebuyers may not even know who handled their title. Instead, they’re much more likely to remember where they closed. If there’s ever a question about or a claim on the title insurance, it’s easy for the homebuyer to call where they closed and they’re able to get their questions or claim handled right away.

Advantage #3: Customer Service and Expertise

While all closing attorneys understand title and are qualified to perform closings, closing attorneys that work in a title and closing company are much more well-versed on both sides. These attorneys live and breathe title and home closings, giving them additional expertise for your transaction.

A closing company also brings an added level of service to your home closing. You can have an excellent closing with a closing attorney in a title office, but closing companies are customer service experts. These offices are dedicated to performing closings and providing an outstanding closing experience for lenders, agents, and their clients.

At South Oak Title and Closing, we’re title industry experts who are committed to customer service throughout the entire title and closing process. We partner with agents from the time the contract is signed until the deal is closed, and we’re available to support agents every step of the way. We work hard to give our clients the best closing experience possible through accurate, on-time files and comfortable closings. We also recognize that it’s an honor to participate in one of the most significant transactions a person can make.

To learn more about how South Oak can provide the best title and closing experience for you and your clients, contact us today. You can also order a title and schedule a closing using our online form.