FAQ: Why do title companies need to review entity docs?

FAQ: Why do title companies need to review entity docs?

A: Title companies need to review entity docs to ensure that any entities involved in a transaction are registered, who within the entity has authorization to buy/sell property and who is authorized to sign on behalf of entity.

The collection of required documents from an entity is like a form of verifying identification. Just as title requests a copy of photo identification from an individual to confirm that individual’s identity, the entity documents establish which individuals are part of an entity, which helps to limit fraud or mistakes that impact ownership of property.

For example, if a deed is signed by an individual that has not been granted the authority to sign on behalf of the entity, then the deed is potentially void, resulting in the buyer not legally owning the property that was purchased.

Have questions about entity docs? Contact our team today.