What are Title Clouds, and what impact do they have on closing?

First National Title (FNT) is proud to be Arkansas’ largest independent title and closing company, with 26 convenient locations throughout The Natural State. But we still believe in taking a small-town, community-centered approach to customer service. We operate independently of ownership by real estate agencies or financial institutions, and every decision we make is designed to successfully complete a real estate transaction. We’re ready to ensure your residential or commercial real estate closing as smooth and hassle-free as possible, and you’ll always be able to work with an experienced professional in or near your community. But before the sale can be consummated, the seller must demonstrate clear and unencumbered ownership!

Contact us as soon as your offer is accepted and your property is under contract, and we’ll ensure that you enjoy a professional team working toward a smooth and hassle-free transaction from start to finish. The first step in any property closing is the title search, and our team of seasoned title agents will confirm that there are no liens or encumbrances. Encumbrances are also known as “title clouds” because they cast shadows over the property closing.

Some title clouds are relatively simple to resolve, such as inaccurate physical property descriptions or misfiled paperwork. If a previous property owner died without leaving a will, there might be previously unknown heirs with a legitimate property claim. The most common type of title clouds that are encountered are liens placed on the property title by creditors attempting to collect unpaid debts from the seller.

Once the title search is complete and our title agents are fully satisfied that the title is unencumbered, our professional closing agents will proceed toward closing the transaction. Once the closing is complete and has been consummated, FNTC will issue you an owner’s title insurance policy from a trusted underwriter that will be effective for as long as you own your home. We proudly offer title insurance products from top underwriters, including First American Title Insurance Company, Chicago Title Insurance Company, Commonwealth Land and Title Insurance Company, Fidelity National Title Insurance Company, and Old Republic National Title Insurance Company. In the unlikely event of a future title dispute, your policy protects you.

If you have any questions about title insurance, contact us online or at any of our 26 convenient Arkansas locations listed below!