Important Aspects of Title Insurance: Choosing the Right Title Insurance Companies
Are title insurance companies really that important when you’re buying a new home? A lot of people would disregard the importance of these companies and their insurance policies simply because title problems aren’t talked about that often. How many times have you heard, for example, that homeowners suddenly woke up surrounded by lawyers because the homes they inhabit were built on real estate belonging to a previous owner? Unfortunately, such cases are not only plausible, but they happen all the time. This is where title insurance comes in, and this is why it’s so very crucial to find the right title insurance company to do your title search.
Why Finding a Reliable Title Company Is So Important
What do title insurance companies actually do? This is a question that doesn’t come up frequently enough, but one that can answer many other questions, as well. Title companies are, in fact, insurance providers. They are tasked to find all possible instances where claims could be made against you once you buy a real estate property. Title claims can range from your property being built on disputed land, to liens, unpaid taxes and the presence of undisclosed heirs. The reason why finding a good title company is important is because the title search responsible for finding all these potential problems needs to be thorough. You have to know that you can rely on the experts who conduct that search to make sure that you are completely protected in the event of any possibility of a past owner making a new claim.
Title Companies and Closing Offices
One of the key aspects of deciding on the best title insurance companies is choosing between a standalone title company and one that also handles escrow. You’ll find that many title companies also play the role of escrow companies, having the additional task of managing your closing documents and tasks. If you opt for a title company that handles escrow, make sure you find a company that can play the role of a reliable, unbiased third party. They should be capable of holding all earnest money and deposits in an escrow account, handling HUD-1 statements, ordering updated data prior to the closing process and notifying any of the affected parties of any possible problems and discrepancies.
What Is the Reputation of the Company?
Reputation is an essential criteria regarding the selection of the best title insurance companies. If you want to make sure the company in question is legitimate and helpful, ask for referrals from people whom you trust and those who have knowledge about the best title companies in the area. Ask for referrals from family members, friends and work colleagues, as well as landlords and real estate agents you might know. Also, ask for their opinion about a certain company you might consider and whether they think it’s legitimate.
The Staffing and Resources of the Company
If you found a company, seek to find out more about their resources and staff. How good is their customer support service, and how stable is the company? Does it offer errors and omissions insurance? How many employees do they have to handle the volume of work they receive? Also, find out as much as possible about how they organize their work and how they are able to centralize redundant functions better than other title insurance companies.
Title Insurance Fees
The company that charges the lowest fees isn’t necessarily your best choice. That being said, it’s extremely crucial to keep track of all the fees of a title company and how they compare with those required by other companies. Keep track of title rates set for your state and whether or not some rates or fees are regulated. The escrow fee is typically the only fee that isn’t regulated in most areas, so it should give you a good outline of how the company does business. When it comes to choosing the most dependable and suitable title insurance companies, these are all important points to remember.