Who Is Responsible for Getting Title Insurance?

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If you have never bought a house before, you probably haven’t heard of title insurance. A property deed or title has to be “clear,” or “free of defects,” that could cause the sale to be invalid or illegal. Title searches are done to try to ensure that there are no holds barring the owner from selling the property. Still, some title problems don’t come up until after the sale. This is what title insurance is meant to cover.

Title defects can vary, but the most common include: Read more

What to Do When a Title Cannot Be Produced by the Seller

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Did you get all the way through closing while purchasing your new home only to discover that the seller can’t produce a title or deed for the property? If a seller isn’t able to produce a clear title, the home sale might not be valid. Here’s what you need to do next.

Understand what a clear title is.

A clear title means that a real estate deed has no title defects such as co-owners not in on the deal or lienholders or stakeholders preventing the sale. A property deed can easily be obtained through the courthouse; and if a seller won’t or can’t produce the title, it is probably because they don’t want you to know about a defect. Read more

Common Misconceptions About Title Insurance

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Most people know little to nothing about title insurance. You’ll never deal with title insurance if you don’t buy a home. Title insurance is designed to protect you in case there are problems with the transfer of the title or deed. It is required by most lenders, so you will definitely have to purchase title insurance. Here are some misconceptions that you need to be aware of.

I don’t need an owner’s policy.

The title insurance policy you purchase for your lender does not protect you personally. That policy only covers the lender and your loan. If there is a problem with the title, the lender is protected from losses. If you, too, want to be protected, you need to also buy an owner’s policy. The owner’s policy protects you for as long as you own the home. Read more

Three Common Title Defects and How Title Insurance Saves You

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Any real estate agent will tell you that buying a home is not the cut-and-dry experience that you might have when buying a car or other big ticket item. There is a lot of paperwork that goes into buying a home. Among the expenses you will experience during the purchasing process are appraisals, home inspections, and title insurance. Title insurance is necessary because sometimes issues do arise with titles that can prevent or delay a sale. Here are some common title defects and how title insurance helps save you.

Co-Owners

Sometimes the deed may not accurately reflect all of the owners of a property. If a property has shared ownership with a spouse, sibling, parent, or other person or entity, that owner needs to sign off on the sale as well. If they don’t and they come back later and stake a claim to the property, you could lose your home. Title insurance will protect you by repaying you for the money you have lost from losing the property and may also cover some moving expenses. Read more

Three Reasons Not to Skip on Title Insurance

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There are a lot of small expenses when you are trying to purchase a home. Most home buyers are not aware of all the little costs that add up upon closing. One of the things that you need to prepare for is title insurance. You might be tempted to skip this expense, but that would be a mistake. Here are three reasons not to skip on title insurance.

Your Lender Requires It

Most lenders require that you have title insurance in order to get your mortgage. This lender’s policy covers the legal expenses of the lender in case a title defect arises. It will also pay off what you owe on the mortgage, but you’ll lose the money you already paid up to that point. Your buyer’s policy will cover your own financial losses in case you have to give up the property for some reason. Read more

The Dangers of Not Having Title Insurance

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When you are going through the process of selling your home, there are a lot of little things that need your attention. It can seem as though the to-do list is never going to be completed. One of those small things is title insurance. There are a lot of reasons that a buyer wants to have title insurance. There are risks for both the buyer and the seller when you skip on the title insurance. 

Title Defects Affect Closing

Title defects can affect the closing of a sale on a home. Title defects can be anything ranging from:

  • Back property taxes being owed on the property
  • Unrecorded liens
  • Unrecorded access rights

Read more

What is Title Insurance and Who Needs It

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Buying or selling a home is a complex process, and most people who have never gone through it are unfamiliar with all of the aspects of the sale. One of the things that you may need to have is title insurance. Title insurance protects buyers and lenders, but it is purchased by either buyers or sellers. In some cases, title insurance policies will be purchased by both the seller and the buyer. Here’s what you need to know about title insurance and when to get it.

What is Title Insurance

Title insurance is a layer of protection for buyers and lenders. In order for a property to be legally sold, it must have a clear title. A title search is done in every real estate transaction to ensure there are no liens or tax levies on the property. However, a title search doesn’t always turn up everything on a property. Title insurance protects the buyer and lender in the event that defects in the title arise after closing. Read more

The Sneaky Title Defects That Could Threaten Your Home Ownership

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The real estate market is one of the backbones of the American economy, but every transaction is vulnerable to some level of risk. This is why title insurance has existed for more than 125 years to protect home buyers and lenders alike.

Title insurance is a simple insurance policy that exists in two forms. If you are the buyer of a real estate property, title insurance protects your investment in the unlikely scenario that a title defect is discovered after your sale. Title insurance also covers the institution providing the buyer’s mortgage loan for the same reason.

Most home buyers are surprised to learn that the title of their home might not be free and clear. The following three title defects are a few of the problems that could threaten your newly purchased home without title insurance.

Unknown Liens

Lien is a claim that can be placed on a home in response to money owed by the homeowners. It serves as a legal notice that the home cannot be sold until the debt is resolved. Mortgage companies don’t offer financing until all liens are cleared from a property. Liens are typically uncovered before a home is sold, but it’s possible for an unknown lien to be discovered after you’ve already purchased your new dream home. Without title insurance, you would risk losing your home due to a lien you never caused. Read more

Title Insurance: What You Need to Know

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We all know the purposes of health and life insurance, but what about title insurance? When buying or selling a home, title insurance is an important factor that shouldn’t be overlooked. In fact, it is an essential component of the home buying process thanks to the protections that it provides. Here’s everything you need to know to be an informed buyer.

Title Insurance Guarantees Your Home Is Actually Yours

A home cannot be transferred into your name without a clear title. The title is a document that grants you ownership to the land and the rights to modify or transfer what you own. Unfortunately, the process of passing the home’s title from owner to owner can get complicated.

There is always a chance that your seller actually lacks free and clear ownership of the house and property. If you unknowingly purchase a home that does not have a clear title, you could lose everything, including your investment and the home itself. Title insurance is a form of indemnity insurance that prevents this nightmare from happening to you. Read more

The Nightmare Situation that Proves You Need Title Insurance

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Title insurance may not be as widely understood as health insurance or car insurance, but it is equally as important for homeowners to secure. Far too many homeowners have found themselves navigating tricky and potentially disastrous situations that only title insurance can resolve.

Title Insurance: Protection For Your Purchase

Unlike health insurance that requires a monthly fee in order to maintain coverage for potential future problems, title insurance involves a single charge, usually around $1,000, to ensure the legitimacy of your home before you buy. A title company will complete thorough research to ensure that the title to your future property can rightfully become yours and that no conflicts exist that would prevent the sale from going through. Common problems that occur include unpaid taxes, judgements, and ownership disputes that place the title of the home into question. Assuming the title company finds that the title is valid, you will receive a legal document stating the validity of the title you are purchasing. This document protects you from any financial loss in the future if an unrealized title conflict arises. Read more