809 West 3rd St.
Little Rock, AR 72201-2103
(866) 850-6929 (Toll free)
5601 JFK Blvd., Suite 201
North Little Rock, AR 72116
(501) 771-4902 (Fax)
Stonewall Square 501 North First Street
Jacksonville, AR 72076
(501) 241-0619 (Fax)
121 East Third Street
Stuttgart, AR 72160
(870) 672-4885 (Fax)
2120 W Main St Ste 1
Cabot, AR 72023
(501) 843-1882 (Fax)
WHAT DOES A TITLE COMPANY DO?
The title company provides insurance against defects in the title or liens insured against. In other words, if the title company says there aren't any other liens on the property and you buy it, and subsequently you are bombarded by someone who says they have a lien on your property, the title company has to take care of it, often by paying it off, out of their pocket - not yours.
WHAT IS A TITLE SEARCH, AND WHY DO I NEED ONE?
A title search is a detailed examination of all public records that affect a property. These records include deeds, mortgages, tax records, court records, property and name indices, and many other documents. The purpose of the search is to verify the seller's true interest in the title and right to sell the property, and to discover any claims, defects and other burdens on the property. The search protects everyone involved in the property transaction since problems with real estate are transferred with the ownership.
WHAT KINDS OF PROBLEMS CAN A TITLE SEARCH REVEAL?
A title search can reveal any party that might have an interest in the property, as well as a number of title defects, liens or other restrictions. For example, things like outstanding taxes, unsatisfied mortgages, and judgments against any recent owner as well as restrictions on the use of the land may require an extensive search.
ARE THERE ANY PROBLEMS THAT A TITLE SEARCH CANNOT REVEAL?
Yes. There are several "hidden hazards" that are impossible for a search to uncover. For instance, a previous owner may have recorded his marital status incorrectly, resulting in a possible claim by a legal spouse. Other "hidden hazards" include fraud and forgery, defective deeds, mental incompetence, confusion due to similar or identical names and clerical errors in the records. These defects can arise several years after the purchase of your home and can jeopardize your right to ownership.
WHAT IS TITLE INSURANCE?
The answer to this important question is of vital importance to every person who is a party to a real estate transaction. Buying any kind of real estate could very well represent the largest single investment a person ever makes. And real estate, like every other thing of value, is worth protecting.
HOW MUCH DOES TITLE INSURANCE COST?
Probably a lot less than you think. Generally the cost of title insurance (including the search, examination and related services) is about one percent or less of the value of the property. This premium is not paid annually, but it is a one time fee usually paid at the closing.
HOW LONG DOES MY COVERAGE LAST?
The insurance coverage never needs to be renewed. It is valid for as long as you or your heirs have an interest in the property.
WHY USE PROFESSIONAL LAND TITLE COMPANY?
Professional Land Title Company (ProLand) has extensive experience and contacts in the real estate/mortgage industry, and can provide you with the full service title work you need. Enough cannot be said about customer service. Without it there is nothing. Just as Sam Walton said,
"There is only one boss. The CUSTOMER. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else."
Listening to our clients' needs is a major part of ProLand Title's customer service. As a result, ProLand Title provides a broad variety of tools to assist today's professionals in obtaining listings and getting to the closing table. These include....
Locally owned, knowledgeable, customer service oriented, first in professional service, and a financially sound product. This is ProLand Title.
WHAT IS ESCROW?
As a buyer or seller, you want to be certain all conditions of sale have been met before property and money change hands. The technical definition of an escrow is a transaction where one party engaged in the sale, transfer or lease of real or personal property with another person delivers a written instrument, money or other items of value to a neutral third person, called an escrow agent or escrow holder. This third person holds the money or items for disbursement upon the happening of a specified event or the performance of a specified condition.
Simply stated, the escrow holder impartially carries out the written instructions given by the principals. This includes receiving funds and documents necessary to comply with those instructions, completing or obtaining required forms and handling final delivery of all items to the proper parties upon the successful completion of the escrow.
The escrow holder must be provided with the necessary information to close the transaction. This may include loan documents, tax statements, fire and other insurance policies, title insurance policies, terms of sale and any seller-assisted financing, and requests for payment for various services to be paid out of escrow funds.
If the transaction is dependent on arranging new financing, it is the buyer's or his agent's responsibility to make the necessary arrangements. Documentation of the new loan agreement must be in the hands of the escrow holder before the transfer of property can take place. A real estate agent can help identify appropriate lending institutions.
When all instructions in the escrow have been carried out, the closing can take place. At this time, all outstanding funds are collected and fees - such as title insurance premiums, real estate commissions, termite inspection charges - are paid. Title to the property is then transferred under the terms of the escrow instructions and appropriate title insurance is issued.
Payment of funds at the close of escrow should be in the form acceptable to the escrow, since out-of-town and personal checks can cause days of delay in processing the transaction.
The following items represent a typical list of what an escrow holder does and does not do:
The escrow holder DOES:
The escrow holder DOES NOT:
ProLand Title, Inc. will be happy to provide additional information.