FAQs
Once the contract is signed, a title company must be selected as soon as possible to begin the process of reviewing the title and preparing to transfer ownership of the property. There are many details that go into the transfer, so choosing a Title company quickly is important to ensure a smooth and on-time closing.
A title company is responsible for ensuring that a property's title is clear and that the transfer of ownership goes smoothly. We make sure that any liens on the property, such as mortgages, judgements or other bills are satisfied before the property is transferred. We also conduct the closing where all the closing and loan documents are signed in order to transfer the property.
Title insurance protects a buyer from “title” related issues in real property that would negatively affect the buyer’s interest in the property being purchased. It is a one time fee that covers you as long as you own the property. There are no further premiums due once you have the policy. The insurance protects you from past liens or judgments that prior owners may have had which could otherwise negatively affect your ownership interest in the property. It also protects your right to sell the property and from other individuals claiming that they have ownership interest in the property.
Although actual title claims are rare, it is not so uncommon that when you go to sell your home, the title company will ask for your title insurance policy, which helps them clear up what otherwise could be title related issues on the property. Thus, having a policy makes it significantly more likely that you won’t have title related issues crop up when you sell your property.
In Maryland, the Buyer picks the Title Company. Your Realtor or lender may have a good recommendation, but it is ultimately up to you!
You should bring a government issued picture ID such as a current Driver’s license or Passport. If your documents are expired, please tell us as soon as possible so that we can discuss the best next steps.
Your title company will let you know if any additional documents may be required depending on your situation. If additional documents are requested, they can also often be submitted in advance, and this allows for a smoother closing process.
The Deed is the document that gives you ownership of the property. This document is recorded in the public Land Records of the County where the property is located. After the deed is recorded with the County, it will typically be returned to the Title Company and then sent to the buyer together with the Owner’s Title Insurance Policy.
A location drawing is a drawing of a property that provides a bird’s eye view of the property lines, the house, and other potential “points of interest.” The typical cost is around $250-$275. It is not the same as a boundary survey or a “stake survey.” A boundary survey is used to determine the exact property lines of your property and the surveyor may put stakes in the ground, whereas a location drawing typically has a plus/minus of about 2 or 3 feet with no stakes in the ground. The location drawing is mainly used to show that the house sits within the property lines and doesn't appear to be built over any set back lines or other possible encroachments or easements that may not be known to the buyer from a visual inspection of the property.
A typical location survey includes a disclaimer along the following lines:
This is not a property line survey and should not be used for the erection of fences or any other improvements or for permit applications.
Some fence companies nonetheless rely on the location drawing, but if you want to be safe and are intending on putting up a fence or if you know of a potential boundary dispute with a neighbor, you may want to consider obtaining a boundary survey and even potentially talking to an attorney that specializes in those matters.
Oftentimes buyers will originally advise a title company that they don’t want the location drawing and then realize once they own the property that they do in fact want to know the information that a location drawing can provide. That is one of the reasons why we strongly recommend getting the drawing at closing, since it is often useful in ways that can be unanticipated prior to closing.