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What Is a Title Company and Why Is It Important? ๐Ÿ ๐Ÿงพ

by | Apr 26, 2021 | Getting to Know Your Realtor

Full Description Below:

So you’ve heard about this “Title Company” thing that is someone you have to pay when you buy or sell a home. But What does the Title Company Do?

In this video, Julie Turner will help you understand what a title company does in the real estate process. ๐Ÿ™Œ

Tune in our YouTube Channel to know the nitty gritty of Real Estate

Full Transcription Below:

It’s important to choose a very good title company because

we not only are there for you before settlement has happened,

we’re there for you during settlement time and then obviously

to provide the best services for settlement for all of our

clients. And that’s why MBH is really committed to ensure

the MBH is always positioned for your successes.

Alright guys.

So today we are going to discover what is a title company

with Julie Turner from MBH.

Julie, thank you so much for taking time to explain to us

all of this amazing information.

How are you doing?

I’m doing great.

Thank you so much

Brian.

Hello on the West Coast.

Yes.

Awesome.

So, like what does the title company do?

What is the title company?

Like give us, give us the T.

What is this?

Okay.

Awesome.

So you know, people are purchasing homes everyday, and everyday the

buyer and sellers are in contact with their real estate agent

and many are unaware that there’s so much involved after

ratifying in contract.

So ratifying a contract is basically just agreeing on the

purchase of a home on both sides, the buyer and the seller

and they come to agreement of purchasing this home.

And what do we do next?

So we hire a title company, we hire a settlement company.

Title and settlement company are in exchangeable, it’s the

same thing.

So just depending upon where you are in the region, some

people say title company.

Some people say settlement company, but it’s the same thing.

We are MBH Settlement Group.

We are here in DC and we are here to help you with what happens

after ratifying contracts. We search records back 40 to

50 years to ensure that title is clear and that the home

and deed is eligible to be sold by the buyer and to make sure

that all the most recent things are recorded, we work through

all the details and protect the home buyer and to ensure

that the closing and settlement goes smoothly.

Okay, that makes sense.

How do you pick a title company or like what makes like the difference

in terms of like picking them or, you know for MBH?

Yeah.

What’s the difference?

Sure.

So Mbh, we’ve been in business for 27 years here in the DC Metro

Virginia, Maryland area.

We have successfully handled over 200,000 settlements, and

our five star satisfaction rate can be found online in our

public reviews as well as our surveys.

We do with our clients afterwards. And picking a title company,

we see our home buyers,

our home sellers, our refinancers, and our real estate agents as

our clients.

And we work every day to make sure that MBH is positioned

for their success.

It’s about open communication.

It’s about making sure that we are professional.

We know the industry and making sure that we offer a smooth

and professional closing for you and your client.

Yeah.

And you mentioned like, this, okay, so title contracts.

like what you mentioned this great example of title contracts.

Kind of like how like, give me that example.

You were talking about how like the reason you want a good title

company is because after the fact, it’s not just like, it’s not just during the

closing time, but even years and years later, like what was, what’s the

example you gave me?

Right.

So you know, for me and for us at MBH, we want to make sure that we

have an ongoing relationship with our clients.

We’re here for you before settlements happening.

We’re here for you while settlement is happening.

And then we’re here for you after settlements happening.

So to give an example, say, for instance, the home buyer

has been in their home for, I don’t know, 10 years, and they

get a new neighbor.

And so now you’re noticing the new neighbor that’s moved

in is building a fence, and you look up the window and you’re

noticing, well, this seems a little bit on my property so

they can call MBH settlement.

And while they were going through their settle process may

purchase a home survey.

And so the home survey is basically just showing the boundaries

and the borders of their property and making sure that they

know what yard is theirs versus who’s their neighbor’s. And

they can call us at any time, way after settlement.

Say, hey, we need a survey document.

Usually you do retain it when you do the survey.

But just in case you lose those documents, we can always

get them back up.

Hand them over to you and say, this is your survey of your

home that you purchased 10 years ago.

They can got out to their neighbor and say, excuse me, Mr.

Smith, you know here’s the proof of my survey of my home.

please do not build your fence right next to my kitchen window.

So it’s important to choose a very good title company

because we not only are there for you before settlement has

happened, we’re there for you during settlement time and

then obviously to prove your documents and making sure that

your property is insured and has a survey,

and for examples, like that I just gave.

Okay.

No, it makes sense.

I guess you could probably have stories of people calling

you, right?

Yeah.

We have some nightmares of just random things.

Someone owned a property sixty years ago and came and knocked

on the door and just got out of jail or something.

Who knows?

And this is my property and the current homeowners can say,

no, no, no.

We purchased this property five years ago.

We had a great settlement company like MBH Settlement Group,

and we got a homeowner insurance, title insurance, and it

proves that the property is ours.

So that is the biggest thing that title and settle on the

companies do is making sure that we’re passing on the deed

ownership of the home throughout the years to the correct

homeowner. And that title is clear in order to do so.

And so when something like that happens, you’re protected

and that is your property, that is your home.

Awesome.

Okay.

I love the stories.

Let’s go.

They’re so cool.

Let’s go into, okay so, you know we have different people picking title companies.

So if you are, you know, if have real estate agent, typically, they help you

with that.

If you’re an investor, that’s a little bit different, or

if you’re a whole seller, it’s a little bit different.

Or if you’re selling by owner, that’s a little bit different.

Could you kind of touch on that?

So like let’s start with the first one.

that kind of looks like a little bit in the gray area as an investor,

how do you pick a title company?

Sure.

It’s all about educating people.

And for me, in my position as a corporate sales and marketer,

MBH settlemen Group, of course, a large part of my book of

business are real estate agents and buyers and sellers themselves.

But I really like to reach out to all those and people in

the industry of real estate, whether you’re a hard money

lender, whether you’re an investor, whether you’re a sale

by owner or a buyer and seller themselves, anyone in the

mortgage industry, a loan officer.

We’re here to service everyone that’s in the real estate

industry. So a settlement company does all the same things

for all those different clients.

You have a property that needs to settle.

You have a property that needs to go from one ownership to

the other ownership and to search title.

Make sure it’s clear.

Make sure all the deeds are recorded properly, and make sure

the settlement is taking place professionally and smoothly.

So regardless, if you are an investor or a hard money loan

officer or a buyer and seller, we work with them daily daily

and just making sure that they understand we are a settlement

company here in the DC area in Virginia and Maryland, and

we’re here to service you, but the process is the same.

The process is the same for all of them.

And if I’m not in those particular areas, like how do I… I guess,

how do I pick or find a a good title company?

Right.

We have business partners that do settlements outside of

the Virginia, DC and Virginia market, and I’d be happy to

refer those services to anyone who’s interested.

My email is J Turner, T-U-R-N-E-R @ MBH com.

Again, jturner@mbh.com

Sure.

Just reach out to me directly.

I’d be happy to help with any real estate settlement needs

that you have here, obviously, within the GC Metropolitan

Virginia, Maryland area.

But if you are looking for another title company or settlement

company that you need to settle outside of those areas, I’d

be happy to connect you.

Awesome.

So I guess, like working.

So if I’m in the DC area, like, what is it like working with

MBH? Like, how does that look like?

I guess, like, if I’m thinking about, Yeah, just like giving

you guys a call.

Yeah, I guess.

How would you describe that?

So for MBH, we want to make sure it’s a very streamlined

process. We want to make sure it’s very easy, streamlined

process. We currently have a new agent and buyer seller resource

hub is everything you need, and we all want to click away.

It’s secure.

It’s consistent communication.

We have closing flexibility.

We have two electronic closing options, especially

in the unfortunate world of COVID.

We want to make sure that we keep our clients safe and feeling

good about you know wanting to close but securely.

We have the ability to deposit electronic EMD, which is your

earnest money deposits.

And then we obviously provide title insurance to our buyers.

We’re dedicated to all of our partnerships and communication

communities. A portion of each of our closing is donated

to a designated community, nonprofit and service organization,

which makes me feel really good about what we do, too, and

giving back with community.

And so we have these tools for our agents to make sure that

they are successful in this crazy market right now and making

sure that they can educate their buyers and sellers.

That’s so good.

It’s good.

Yeah.

The market is definitely things are moving quick, very quick.

Yeah.

I guess.

Like in terms of cost association, does the buyer pay for

the title company as a seller?

Like, how does that typically work in terms of costs splitting

or sharing group?

Yeah.

Because we talk a little more about that.

Sure.

So here in Virginia and again, there’s different jurisdictions

for different counties and States.

I’m not aware of anything outside of DC, Maryland and Virginia.

I do want to start off by saying that, but I know in the

state of Virginia, there is a settlement fee for the buyer,

and there’s a settlement fee for the seller.

So at the end of the settlment, towards the end of Settlent,

as you’re seeing as settlment table, there’s a document called

the Ulta, and it is a very itemized list of all the fees

that are incurred with closing your transaction.

So obviously the monies that are being exchanged from the

buyer to the seller in the purchase of the property.

There’s fees from the lenders, there’s fees from the title

company, and there’s fees, Unfortunately, that you cannot

surpass, THE TAXES! So whatever County or state you live

in. They’re going to charge you taxes on your proper party.

So with this ulta document, you can see itemized line by

line, what you owe to the title company, what you owe to

the mortgage company, what you owe to seller as the buyer

of the property. In Virginia, as stated, there is the buyer

side of fees, and there’s a seller side.

The fees.

I know there’s parts of Maryland where the buyer is responsible

for all the settlement fees.

However, that can be negotiated.

Everything in real estate is negotiated.

Everyone who’s in real estate knows that everything and everything

in real estate can be negotiated.

So, but there are some jurisdictions in Maryland that I am aware

of that the buyer is responsible for all settlement fees

and so a lot of times the agents will go in and say, “Okay

let’s negotiate this”.

Let’s split it.

50-50.

And they split it.

50-50.

So again, depending on what jurisdiction of what state you’re

in to see is definitely communicated to the individual parties,

that makes sense.

Okay, so it just kind of depends, like how the sales go in

or like the market.

How markets doing.

Do you need a closing attorney?

Does the common questions like, what is this?

The one thing that MBH stands out, and one thing that we’re

very proud of is that we have 20 different offices here in

the DC, Metro, Virginia and Maryland area.

Within our offices, we have 20 managing title attorney that

can assist you with your settlement needs as well as title

professionals. And so, not all settlement companies provide a title

attorney who don’t need a title attorney to settle, but it

brings a little bit of, I guess, insurance to know that there’s

an attorney that’s looking at a very legal document.

A lot of documents, if not all, documents within a real estate

transaction, are a legal document.

It’s helpful to have a state title attorney to take a look at the

documents, explain the documents to your buyers and sellers.

You at any time as a buyer and seller have the right to hire

legal representation outside of title companies outside of

your real estate agent.

But here at MBH we have those licensed professional adult attornies

to help you with your process.

Yeah, like they’re on staff just as a little bit of extra, insurance.

And they’re the ones to set at the end of the table at closing

time to explain the documents that you’re signing.

That’s good.

Okay, so you know, 2021 everything, or 2020, everything kind of changed and stuff,

like with how we kind of do stuff like, how does that look

like in 2021 with doing title is it done virtually? like, how

does yeah

for people who are wondering.

So I think everyone in our industry in real estate has just

had to pivot the unfortunate part.

I believe in our industry, it’s been such a belly to belly

industry. You know we’re people lovers, we love people.

And I still miss that very much.

But we’ve all had to pivot, and we’ve all had to become friends

with Zoom and meet people that way, which has been some silver

linings as well to that.

But here with MBH, we’ve been always actually technology

driven forward.

We had this in place prior to COVID.

So when COVID hit, it was just a simple, if anything, moving

or more with our technology that we have.

So again, with depositing at EMD, we have the ability to

deposit it electronically.

It’s as simple as when you deposit a check into your online

banking of taking a picture with your smartphone.

It’s something very similar to that.

So it’s very secure.

It’s very simple.

Agents love it.

We also have the ability to do hybrid closing.

So again, as long as the lender, the mortgage company is

okay with having all electronic signatures on the document.

We do have the ability to do 100% virtual closings.

If not, we do a hybrid closing, which is some documents are

signed via electronically and then some documents we can

overnight or mail or you can come into the office and head

wet signatures.

We do hybrid.

We’ve done curbside closings.

We’ve done in the front yard closings.

We’ve done homebound.

We’ve had several persons that were elderly and we’re bedridden

and we’ve had an attorney go out there and sign documents

at bedside.

We have 20 beautiful brick and mortar offices throughout

DC Metropolitan in Virginia, Maryland area that are still

open for business.

We are very strict on our CDC guidelines and making sure

everyone’s staying safe.

We sanitize in between each closing.

We have one usage pens.

Mask, gloves, sanitizer, we do ask that only the parties that

are signing to be present.

We have a large conference room where you can be six feet

apart, obviously taking a consideration of just making sure

that everyone stay safe within this time.

But we have so many different ways to do settlements and

closings. We do settlements and closings that are international.

We have people who are in Egypt, Dubai, and Africa that need

to close and we are able to do that as well.

So I believe that we’ve been very, very innovative in making

sure that we provide the best services for settlement for

all of our clients.

Just kind of wrapping up here.

What’s the typical timeline for, I guess, like title and

settlement and all this if you’re going through the process.

Right.

So the typical.

And again, this is a typical closing settlement.

30 days is usually typical.

So you ratify contract.

The agent themselves have to go through their whole process

of home inspection, appraisals, whatever

addendum that need to be crossed off their checklist.

But soon, right after you ratify, you do hand over your contract

with a settlement company and it takes about typically 30

days to settle and pass keys from the seller to the buyer.

Awesome.

That’s so good.

Maybe in the future of the industry.

Where do you see the market going?

More so, like for title and settlement?

Sure.

So I think we hope and we want the world to open back up.

Right.

And like I said, this is such an industry that’s belly to belly

such an industry that is personable, and I hope that it does

open up to a certain degree that we can still have those

PostNet relationships personally.

Belly to belly, but I think at the end of the day, so much

can be seamlessly done via virtually, via electronically.

So many things are being implemented to make sure that we

have a secure portal and hub in which agents and clients

can go into and communicate regularly with our title company

to make sure communication is there. Make sure all documents are

there. Make sure all the signatures are needed are there.

I do see that?

I think we are moving forward going to continue to be more

electronic and virtual, but we are open to servicing our

clients in which they are comfortable with.

So if it’s still pen and paper for them, we’re still here

for you.

Pen and paper.

Cool.

That’s good to know.

Okay.

Awesome.

Sweet Julie, is there anything else?

Any other questions I didn’t ask that maybe I didn’t cover

anything else.

Sure.

So I do want to cover one more thing for MBH.

Again, we just open and launched a new resource hub online.

If everything just one click away, you can get a quote if

you can place an order, provide documents to your buyers

and sellers so they know what happens next.

Within.

Within the settlement process, you can log into a secure

document portal to track closing processes, communicate securely.

There’s a resource library where agents can find a tool from

what to bring to settlement closing for your clients to an

electronic version of our Home Buyer Guide.

And we actually just got our Home Buyer Guide translated

into Spanish for all of our Spanish speaking community.

And Yeah, that’s huge.

I mean, I guess that goes along with kind of just again,

being electronic and being able to reach our clients and

giving them tools electronically.

And also coming May 3rd, we have our annual Cinco de

Mayo Continuing Education class.

So every year for the last three years, we’ve provided an

all day class of continuing education.

That’s something that you have to have a real estate agent

here in DC, Maryland, Virginia. Pre COVID, we used to do in person.

We would obviously have a big party and SCE classes and sponsored

lunch and things like that.

But now via Zoom it’s still just as fun.

We have a panel of professionals in our industry, brokerages,

mortgage loan officers.

Obviously, it’s MBH settlement group, and we just educate

our agents about what’s happening in the market.

What we foresee is going to happen and just having great

communication of sharing successes and challenges with what’s

going on in our market today.

After that, we have three hours of continued education for

our agents, and then we have a virtual happy hour.

We have prizes giveaways last year, I think we gave away

like a Margarita machine.

So it’s so much fun.

We have great attendance this year it’s via Zoom.

You register online again, if you need any more information

on that and want to register yourself, you can contact me

at jturner@mbh.com

So that’s always a fun, exciting event that we have every

year. But just wanted to wrap up and let you know that business

is built on strength and your relationships and those relationships

are built on trust.

And so that’s why MBH is really committed to servicing, continuing

industry innovation and our partnerships.

And we’re driven to insecure the MBH is always ensure that

MBH is always positioned for your success.

I love that. So for getting a quote on the online.

How does that work?

Is it like you just put your information in?

Sure.

Yeah.

So you go on mbh.com, and there is a tab that comes down, and

it’ll just get a quote.

So whatever.

Let’s say you have 1-2-3 Main Street, and you want to kind

of know what the closing costs are going to be for the one

you 3 Main Street for your client.

You go in there.

It just prompts you for questions.

What’s the address?

What’s the price of the home?

Just different items of what?

The different things like that associated that might affect

I guess like, the cost or something like that?

Yeah, right.

And it’s very simple.

It just the address and just whatever information it prompts

you to put in and put in.

And then at the end, it will give you a ballpark figure of

how much your price of settlement will be.

But then also again, reach out to me directly.

We can make a very pretty kind of co marketing price sheet

for you as an individual agent.

That’s another thing we do to help our agents.

We co market with them.

So it’ll just be a really pretty sheet.

And it’ll say itemized list of all the fees and costs that

are associated with settlement with MBH.

It’ll have the agent’s picture, name, contact information, and

we can provide that for you as well.

But you can go online at any time and just kind of get a

quick quote, quick quote.

Cool. Awesome. Sweet.

Julie, thank you so much for chatting and sharing some stories

and all about titles.

And what is this you know, so.

Awesome. I’ve had such a good time, Brian.

I can’t thank you enough for inviting me today.

My pleasure.

My pleasure

Cool. Until next time.