How Title Works

How Does the Title Process Work in Washington and Oregon?

In both Washington and Oregon, title companies provide similar services essential to real estate transactions, ensuring that properties can be legally and securely transferred. Here’s a breakdown of what title companies do in these states:

Title Search:

Title companies conduct a comprehensive search of public records to confirm the property's legal ownership and check for issues such as liens, unpaid taxes, easements, or other claims that could affect the sale.

Title Insurance:

After verifying the title is clear, the title company provides title insurance. This policy protects both the buyer and the lender from potential future claims or disputes over ownership or defects in the title.

• Owner's Title Insurance: Protects the buyer.
• Lender's Title Insurance: Protects the mortgage lender.

Escrow Services:

Many title companies also offer escrow services, holding the buyer’s funds in a secure, neutral account until all transaction conditions are met. The escrow officer ensures funds are disbursed correctly after closing.

Document Preparation:

Title companies handle the preparation and processing of key closing documents, including deeds, settlement statements, and affidavits, ensuring compliance with state and local laws.

Closing Coordination:

They coordinate the closing process, ensuring all parties (buyer, seller, and lender) sign the required documents and that payments, such as down payments and loan funds, are appropriately distributed.

Recording of Documents:

After closing, the title company ensures that critical documents, such as the deed, are filed with the county recorder's office. This legally records the transfer of ownership.

Key Differences Between Washington and Oregon

Washington: Although similar, each county in Washington may have slight variations in how documents are processed or recorded, and title companies ensure compliance with county-specific requirements.

Oregon: Real estate transactions in Oregon involve a statewide uniform system for recording documents, making the process highly consistent across counties. Title companies in Oregon also ensure compliance with this system during the recording process.

In both states, title companies play a pivotal role in safeguarding the interests of buyers, sellers, and lenders, ensuring the real estate transaction is legal, secure, and properly documented.