When you purchase a home, one of the documents that you will receive and be required to sign is for a title. A title gives the person the right to or ownership of a certain piece of real estate property. Once you have found a piece of property that you are interested in purchasing and you reach an offer that is acceptable to both the seller and the buyer, you will receive a preliminary title report. This will take about a week to receive. The title company will complete the preliminary title report. The title company is selected by either the buyer or the seller -- or by the lender who is going to finance the purchase. The title report shows ownership of a specific piece of land/property as well as any liens on that property. This report will also show any title defects that might not be known about otherwise. If there is anything on the title that needs to be cleared up before the new buyer takes possession, it can be done after this report is received. A title report is required in the home purchase transaction.
The escrow holder acts for both parties and protects the interests of each within the power of the escrow instructions. Escrow cannot be completed until the instructions have been fully satisfied and all parties have signed escrow documents. The escrow holder takes instructions based on the terms of the purchase agreement and the lender’s requirements.