A title demonstrates your legal rights on a property or asset. Title companies typically facilitate the buying, selling, and refinancing of real estate properties by verifying the authenticity of the seller’s ownership and allowing the property to be transferred to the buyer. In this process, the expert title professionals forage into all the public records of the concerned real estate piece to detect any loopholes. When they notice red flags, they stop everything for a while and work on fixing those issues to safeguard the transaction. Taking their assistance makes sense if you plan to buy or sell a property. Before this, exploring the nitty-gritty of certain aspects is crucial for clarity.
House title
As mentioned, a house title document clarifies the property ownership and the right of other entities on the same, if so. As a buyer, you want to buy a house with a clear title so that no one can claim anything, whether relatives, creditors, etc. These areas typically require proper scrutiny. Some homeowners confuse title with deed because of their similarities. But the title describes your legal right over the property and its use. Conversely, a deed is proper legal paperwork that establishes your ownership. If you want a property, approach a local title insurance agency for guidance.
Title insurance
A real estate policy like title insurance secures the ownership interest of a homeowner and lender from title defects and third-party claims that can appear after the transfer of ownership. If someone claims ownership of the same property, title insurance covers the financial risks with the claim. They also take care of legal fees. Two types of title insurance are accessible: homeowner and lender. Suppose you refinance or purchase a house through a mortgage. You will pay for the lender’s title policy, which could be 0.5% of the property’s buy price. Your mortgage will be safe if someone claims rights on the property after the deal closure.
Conversely, homebuyers can also buy ownership title insurance to shield their interest in the property for as long they possess it. It will help you avoid facing payments for unknown claims, such as contractor’s liens. Your home will also be safe against old, undetected claims. If you lose your home due to a particular claim, the policy will manage your financial loss.
Role of a title company
Besides issuing insurance, title agency professionals do many other essential work. They do a title search of the concerned property in public records to spot any suspicious activity or gap. When everything looks clear, they give a document covering all the transactions associated with the property, such as lawsuits, tax liens, ownership transfers, restrictions, etc. They can also survey the property on your request if that’s included in their services. Often, they manage an escrow account to store the money until the sale has been closed. You can also see their contribution to the closing process. Finally, they issue insurance after the deal has been sealed.
Real estate selling and buying is an extensive process, with thousands of dollars at risk. With the help of title insurance, you can escape them efficiently and effortlessly.
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