VIDEO FAQ

BUYER GUIDES

FREQUENTLY ASKED QUESTIONS

1. What does a title company do? 

A title company plays a big role in making sure your real estate transaction is legal and legitimate. In other words, before you pay money to the seller for a piece of property, the title confirms that the seller holds the right to sell the property. 

Title companies stick with you through the closing, ensuring that everything moves effortlessly between arranging title insurance, signing proper documents, exchanging funds, and transferring ownership. 

2. What can I expect from Allied Title & Escrow? 

At Allied Title & Escrow, we work to handle your real estate transactions from the title search to the closing and everything in between. We even offer remote settlements so you won’t ever have to be inconvenienced. 

There are so many little things that can cause a closing to be delayed. Thankfully, our highly skilled team has years of experience in knowing what to look for - and how to problem solve - so that your closing process will be smooth and right on time.

Check out all the reasons why we’re different!

3. What is a title search? 

A title search is a thorough search of the documents concerning a specific piece of property. It is performed by a title company. Careful review and evaluation of any official records will help identify any issues or limitations with the property, such as judgments, tax liens, easements, encumbrances, missing deeds, and so on. 

The title company gives the green light to move forward with the sale. 

4. How long does it typically take to clear a title? 

The idea behind clearing a title is to ensure that there are no defects. In order to do so, careful attention needs to be taken when doing the search. And since every property is different with some having a much more extensive history than others, the time it takes to clear a title may vary. 

Title may be cleared in as little as a couple days or as long as a couple of weeks. 

5. What is a settlement?

In real estate transactions, the terms settlement and closing are often used interchangeably. But it refers to the last step in buying a property - when the documents are signed and the money changes hands. It is during the settlement when the property changes ownership. 

6. What is an EMD? When is it due?

The Earnest Money Deposit (EMD) is a good faith deposit that the buyer makes, usually held by the title company, to demonstrate their serious intent to go through with the purchase of the property, to the seller. The contract you sign will dictate when the EMD is due, usually 3-5 days after ratification (the date the contract is signed).

7. Who gets to choose the title company?

The buyer chooses the title company in MD and DC. The seller usually chooses in TX and CO. In VA, buyers and sellers can choose different title companies.

8. What are the fees associated with this transaction?

There are many fees associated with buying or selling property, outside of the purchase price!

For buyers, you could owe funds such as property taxes, title fees, advance dues to the HOA or Condo Association, or a Survey fee. You will also owe fees associated with your lender. For sellers, you could owe funds such as commission to the realtors, property taxes, mortgage payoffs, title fees, or fees to the water company.

Allied is here every step of the way to make sure you understand what you owe, and why you owe it. The fees are broken down on your Settlement Statement, or ALTA. If you'd like an estimate of your fees early on in the process, we're happy to provide it! We will also go through the ALTA together at settlement.

9. What happens if there is a defect on title? Will it hold up closing?

There are many kinds of defects that can pop up on title. Some take 20 minutes to clear, some take a little longer. As soon as we're aware of defects, we'll be in touch with you to give you updates, and ask for any further information that we need. We've been doing this for a long time, so we're prepared to deal with almost any problem! We believe in communicating with you proactively to prevent things turning into headaches.

10. Who should I contact if I need help during the transaction?

Once you have a ratified contract, Allied will assign a processing team to your file, consisting of one Processor and one PreProcessor. They will be your points of contact throughout the transaction. You can reach them by email, or by phone! We also have a team of amazing attorneys on staff to help handle different situations that arise. If you aren't sure who your team is, contact info@alliedtitleandescrow.com to get pointed in the right direction.

11. How much does Title Insurance cost?

There are two types of title insurance, Lender's and Owner's. There are also two separate types of Owner's Insurance! The cost is proportionate to the purchase price of the property, and also your loan amount. The rates themselves are set by the state, so they'll be the same at every title company. Once you have a ratified contract and know what your loan amount will be, we can quickly calculate what the cost of title insurance will be. Ask your processor if you'd like a quote!

How Do I get started with allied title & Escrow?

If you are looking for a title company or just have some questions about the process for your future purchase, Allied Title & Escrow is here for you. Find the location that is closest to you and send us an email. We’d love to help.