Summit County Title Companies
What do Title Companies Do?
Title companies perform services for both the Buyer of a property as well as the Seller. For both parties, title companies will perform a title search which means they will look for any outstanding liens such as a mortgage, second mortgage, contractor lien, water bill lien, and HOA lien. Any person or entity that has a lien on a property has a right to proceeds from the sale of a property to pay back any money owed to that individual or entity. Buyer wants to ensure they are being given a “clean title” to a property without any encumbrances.
After performing a title search, a title company will issue title insurance, which typically a Seller pays for, that insures the property against any future persons claiming a right to the property. This protects both the Seller and the Buyer. The cost of title insurance is typically based on the square footage of a property. Homeowners that have owned the property a short period of time, such as two years or less, can often get a discount on title insurance if they use the same company that insured the property at the time they originally purchased the property.
Title companies in Summit County will typically oversee all funds related to the sale of a property. They will collect earnest money (usually in the form of a personal check or wire) and receive the funds for the final sale from the Buyer, usually via wire. They also collect funds from the lender, if one is used. They then distribute the funds to the Seller, real estate agents, to the tax entities for property insurance, HOA’s, and any other entity that is entitled to funds at the time of the sale.
Title companies facilitate the closing of a property. They ensure all documents are signed and in order before submitting for recording. In Summit County, most homeowners are second homeowners or investors and do not live locally. As such, it is common practice to have mail-outs which means the title company will mail a package will all documents to either the Buyer or Seller (or both individually) who then will have their documents notarized and sent back to the title company via a trackable carrier, such as FedEx or UPS.
Sometimes one party, the Buyer or Seller, will come into a title company office and sign the paperwork there. Both parties do not need to meet the title company closer (the person who facilitates the closing) at the same time. With mail-outs, paperwork must be signed in advance of the closing date so the papers are in the title company’s possession by the closing date. Note: many lenders require their paperwork to be postdated to match the closing date.
If a person that is to sign cannot be present to sign (often due to travel or work obligations), a power of attorney assignee can sign on his or her behalf.
Title companies will record all documents with the town once a closing is completed.
Types of Deeds
There are different types of deeds that can be given to the Buyer. In most cases, a Buyer wants to receive a general warranty deed. This guarantees the Seller (grantor) holds clear title to the property and has the right to sell it. A quitclaim deed does not guarantee that the seller holds title to a piece of real estate. A special warranty deed only guarantees that there were no defects to the property during the time the Seller owned it (not for owners previous to the current Seller).
Owner’s Extended Coverage (OEC)
On the Colorado Contract to Buy and Sell Real Estate, it is optional who pays for the title insurance. Typically you see the Seller paying for the insurance which means he/she also gets to choose the title company. It is also on the contract for the option to purchase Owner’s Extended Coverage (OEC). It is optional who pays for this additional coverage which insures above and beyond the standard coverage to include:
- Parties in possession
- Unrecorded easements
- Survey matters
- Unrecorded mechanics’ liens
- Gap period (time between the effective date and time of commitment to the date and time the deed is recorded)
- Unpaid taxes, assessments, and unredeemed tax sales prior to the year of closing
Summit County Preferred Title Companies
Other Title Companies
- Alpine Title
- Assured Title Agency
- Canyon Title
- Chicago Title of Colorado
- Colorado Escrow and Title
- Empire Title and Escrow
- Fidelity National Title Company
- First Alliance Title
- First Integrity Title Company
- Heritage Title Company
- Legacy Title Group
- North American Title Company
- Unified Title Company