Title and Escrow Services when Closing Real Estate in Portland OR

Posted on: May 21, 2007

Anyone engaging in a real estate transaction comes upon the issue of where to close, or escrow, the deal. The real estate brokers involved, if any, generally make the recommendation for the participants. As the rates are set by the Insurance Commission, cost savings are not really an issue. When if comes to selecting an escrow company, preferences are usually based upon personal relationships and service.

Escrow officers are charged with neutrality in a transaction. That is to say, they are prohibited from taking sides and favoring either the buyers or the sellers. At times this can be a challenge, especially if they have a longstanding relationship with one of the parties. They do their best, and overall the parties to the transaction come away feeling well served by the process. The fee is not excessive given the numbers involved in most transactions.

Escrow companies make the majority of their profits from providing Title Insurance Policies. This is an insurance policy on the chain of ownership. In the event that a buyer moves into a house that turns out to be owned by someone else, the issue becomes an insurance claim. This protects the buyer who may have made the biggest purchase of a lifetime. Title insurance is mandatory when borrowing money from a bank or mortgage company. As the property is security for a loan, they require a special extension of the title insurance protecting their interests as well. Should a purchaser engage in a private transaction where the seller balks at making the closing subject to a clear title report, the buyer would be well served to move on to another property. In fact, well in advance of the closing, all parties will be provided with a Preliminary Title Report showing the current condition of the title. Title issues (also known as clouds on the title) are not uncommon and can generally be cleared up prior to a scheduled closing.

Most title companies are open during what might be termed “normal business hours.” Recently, special mobile closers have come onto the scene. These professionals will actually travel to a person’s home or work and take the closing. There is an additional charge for this service but if a seller or buyer has mobility issues or an unusual work schedule, it is well worth the additional expense. Have your broker representative check with his or her escrow service of choice should you need this expanded service.

Best of luck with your closing!

Don McCredie, G.R.I., CRS, is the owner of portlandrealestate.com and the Principal Broker/Owner of EXIT Acclaim Realty in the Metropolitan Portland area. He can be reached at don@exitacclaim.com or by telephone 1-800-203-9898.