Jessica Mathewso we will be unable to insure over. Secondly, In Minnesota, the buyer’s title company also has the role of the escrow company. Escrow is the process by which the interests of all parties in a real estate transaction are protected. The company ensures that all conditions of the sale have been met before the property deed and money change hands. We ensure that the conditions on our preliminary title commitment are completed before closing so that we can issue the title insurance policies. As the escrow company, we receive down payment funds from the buyer and the loan funds from the lender, and we comply with the lender’s instructions for closing. We also prepare the documents for the transaction, such as the closing statement with prorated property taxes, interest and insurance, and the deed or other seller-signed documents required to transfer the property. At the closing, we deliver these items to the appropriate parties, disburse the What does a title company do? A title company is a third party to almost all real estate transactions. When representing a buyer or lender, the title company protects both in two significant ways. First, we verify that the seller has a legal right to sell the property. We do this by searching up to 40 years of historical records, depending on how old the property, and in so doing also determine the individuals that have owned the property. Next, we must determine that the property is free of defects and there is no one else who may have a claim or rights to the property. Once the searches come back, an examiner will type what is called a preliminary title commitment. This commitment lists everything that must be completed before the closing can occur and be insured. This document also lists any exceptions that 22 LAWYERMONTHLY SEPTEMBER 2022 My Legal Life The Necessity of Title Services Title insurance and other services are an essential component of real estate transactions, guaranteeing security for both lenders and buyers. This month we have the pleasure of speaking with Jessica Mathewson, president of Executive Title, who offers an indepth look at the title services sector as it stands today. She shares her own experiences in the sector, the processes that are involved, and the greatest threats posed to the wider real estate industry in 2022.
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