Services Offered In the Greater Hancock County Area

You will often hear the word “escrow” being used in a real estate closing. Generally, escrow is an account owned by a third party that holds and distributes others’ funds. In a real estate closing, the title company acts as an escrow agent by holding the sale funds of the buyer and disbursing the funds to the sellers and others entitled to the funds.

Also, the word “escrow” is used relating to the monthly loan payment of the buyer/borrower. In this sense, the buyer’s monthly loan payment will most likely include an amount for escrow. The escrowed portion of the monthly payment is accumulated and held by the lender and then paid out to the buyer’s homeowner’s insurer and the county for real estate tax payments when due.

A title agency offers several services related to real estate transactions. This includes conducting title searches to verify the property’s ownership history, issuing title insurance policies, facilitating escrow services (including securing all incoming funds and accurately disbursing sale funds to the appropriate parties), coordinating the closing process, and ensuring all legal requirements are met for a smooth and secure real estate transaction.

Lender’s Title insurance is required by lending institutions during residential closing and escrow processes in Ohio. There are two types of policies: one for the lender and one for the homeowner. While the lender’s policy is mandatory, it is strongly recommended to purchase an owner’s policy to protect yourself. A title insurance policy is issued after thorough research into the document history of the property. It ensures the accuracy and sufficiency of the abstract and examines the title, covering matters outside the scope of the abstract. Additionally, it protects against various claims and interests, such as unknown heirs, secret marriages, and other legal complexities.

While not legally required, purchasing an owner’s title insurance policy is essential to protect yourself from potential property ownership disputes and financial losses. Consider this scenario: after buying and settling into your house, a woman claims that her ex-husband forged her name on the deed and the sale was invalid. She takes the case to court, proves her story, regains ownership of the house, and you are evicted. These situations, including liens, legal judgments, or undisclosed ownership claims, can happen to anyone, even with newer properties.

Most lenders demand a title insurance policy, and it is prudent for buyers to have a separate policy to safeguard their interests. A professional examiner searches public records for issues that could affect the property’s title, and should any problems arise, the title company will rectify them. The owner’s policy remains attached to the property, eliminating the need for future purchases.

Ohio is one of three states that still have dower rights in connection with real estate. Dower rights are a grant of interest in real estate based entirely on marriage. If a couple is legally married, each spouse has an interest in the real estate of the other, whether they are on the title or not. Oftentimes, a single person is the only titled owner when they obtain real estate. Later that person may marry, but the couple does not re-deed the property on both names. Despite only one spouse being on the title, the other non-titled spouse has a dower interest in the real estate. This matters in real estate closings as both spouses must sign a mortgage even though the loan may be in only one spouse’s name. Similarly, both spouses must sign the deed conveying the property even though only one spouse is the titled owner. Bottom line, it is most likely necessary that both spouses will have to sign documents at closing no matter if they are buying or selling. Check with us if you have questions!

An often confusing aspect of a real estate closing is the allocation of pro-rated real estate taxes. In Ohio, we pay our real estate taxes a year behind and in halves. Accordingly, buyers of real estate will most likely have to pay at least a portion of the real estate taxes of the seller during a time period that the seller owned the property. We account for this by giving a credit from the seller to the buyer based on the amount of real estate taxes the buyer will pay during the time period the seller owned the property.