Title Engagement Outsourcing: Four Elements Involved and Why Outsourcing Works

Title commitment outsourcing is all the rage right now in the mortgage industry. Key players in the industry such as listing agents, brokers, lenders, homeowners, and listing agents are involved in this. While there are many facets to mortgage processing, the title search stage is complex and tedious. It includes three main steps: title search, title commitment, and title insurance policy. The title pledge, the main topic of this article, refers to a document issued by a title search company after careful examination of public records. The title insurance commitment is also called the title insurance binder and lists the requirements and exceptions of the insurance policy. The document is actually something that prevents a title insurer from issuing a policy to a buyer until all the requirements detailed in it are met. The following section shows four elements of outsourcing title engagement in one form or another.

• A homebuyer: When a person intends to buy a property, they want to be sure of the title status. A pledge of title document is an item that can act as proof that a property has genuine title and belongs to the person or business selling it.

• A listing agent: This is a businessperson who lists properties for sale and has to discover something in the titles that could jeopardize sales. Such may be disclosed through title commitment subcontracting and may include a bankruptcy case affecting a seller or buyer, outstanding liens, conflicting names on the title, and other omissions.

• A listing agent: A title commitment is required after a listing agent has agreed to sign a Real Estate Contract.

• A lender: After signing the disclosures, the title search and release of the pledge of title document are very important to a lender. Title commitment subcontracting allows a lender to obtain a loan policy after meeting the necessary conditions.

Outsourced companies can offer help in more ways than one. First, they are very reliable when it comes to the interpretation of the title of engagement document. The disclosure matters included in it are properly understood only by real estate attorneys. Some of the disclosure items that may not be understood by common property buyers include easements, CC&Rs (Covenants, Conditions, and Restrictions), right of access to property, and various liens. A title commitment subcontracting attorney can explain the meaning of the above terms.

Not only is an attorney needed to explain these terms, but also the key sections of the compromise title document. The main sections consist of Schedule A, Schedule B, Requirements and Exclusions. An applicant who decides to use a third-party service provider to search for property title must understand each of the sections to clear the release of a title insurance policy. In addition to helping a client understand various sections, title engagement subcontracting professionals can get the job done faster and more accurately than any in-house staff or individual property buyers or sellers.

These professionals work independently and remotely using your office’s resources, knowledge, and experience. As a result, they are not a liability to any individual or business looking to purchase their service. During the search stage, they are interested in eliminating problems that may appear on the title, making sure the owner knows about it as well. To prove the authenticity of their service, they produce the document described above and make sure that the client understands everything in it. The title commitment outsourcing service ends when a client obtains the insurance policy and it is imperative to work with a company that could go that far.