Title Company

Title Company

Your Options in Choosing a Title Company and Getting the Best Title Insurance Policy

Choosing a title company is an important part of the process when you’re selling or buying a home. Title insurance is typically required by buyers and provided as a show of good faith by sellers, in order to ensure that there aren’t any problems with the real estate property’s title and ownership status. The main purpose is to avoid losses that would ensue through back taxes, forgeries, fraud, undisclosed liens, court judgments and other legal and financial issues. While sometimes the seller might not know about any of these, in some cases it’s not a big surprise to find that they wanted to cover up some of the title problems prior to selling.

What Is Title Insurance All About?

When you buy title insurance, the title company you choose will be tasked to find out whether there are any legal or financial issues associated with the property. They will seek to determine whether there are any mortgages, liens, taxes and other unpaid expenses that are tied in with the real estate property in question. As a result of a title search, the buyer can learn about, and work to resolve various discrepancies before purchasing the property. The title policy differs from other insurance policies, since the emphasis is not on assuming the risk, but on preventing it. This is why the search process is extremely crucial when it comes to title insurance. Also, the payment is only done as a one-time fee, as opposed to most insurance policies, which require quarterly or annual payments of some kind.

Title Searches and Protection Against Claims

The title company has the role to make sure you don’t run into any surprises during the process of buying your new real estate property. That’s what the title search process is for. Through a title search, the company will search for inconsistencies and uncover who is actually in possession of different parts of the property. In some cases, the person who claims to be the owner doesn’t actually own the property, and you risk to lose ownership due to a claim, right after you paid for your new home. In other cases, old expenses that the previous owner didn’t meet could affect your ownership status, and the search is required to uncover those possible expenses.

What Does the Company Do During the Closing Process?

The title policy is issued during the process of closing the deal on the home you want to buy. You, as the buyer, and the lending institution you choose to get your mortgage from, will both be provided with a title insurance policy issued by the title company. The buyer’s policy is typically designed to protect the buyer’s interest during the purchase. The company will be responsible for making sure that there are no unchecked, special circumstances attributed to the property, such as restrictions, defects or encumbrances affecting the transfer of title and ownership.

What Is the Payment Required for Your Title Insurance Policy?

The cost of title insurance can vary depending on the size of the loan and the state you’re in. In some states, the insurance for a property rated at $100,000 can be as low as $200, while in others it can get closer to $1,000. That’s usually the value of the lender policy. As a buyer, you might have to pay an additional amount – usually a few more hundred dollars – on top of that, depending on the chosen title company.

How to Choose Your Company

If you’re buying a new house or commercial real estate property, it’s important to check all sources before choosing a reputable company for your title policy. Ask colleagues, friends, family members and business partners for recommendations. You can also consider asking your real estate agent. Once you have found a company that looks legitimate, do a background check to see their rate of success and compare their prices to those of other companies. A good title company might not be easy to find, but it’s certainly worth the effort!