Five Things Buyers Should Know About Title Insurance

Reblogger Charles Stallions
Real Estate Broker/Owner with Charles Stallions Real Estate Services

Buyers buyers and buyers don't get caught with your pants down GET TITLE INSURANCE. Bob Ratliff, of Lago Vista, TX explains it well in this post and as a Broker/ coach I explain to buyers and agents alike even on cash sales or family transfers that this is one of the best things to do.

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Original content by Bob Ratliff 492107

Buyers Title InsuranceFive Things Buyers Should Know About Title Insurance

Before the invention of title insurance, buyers in real estate transactions bore sole responsibility for ensuring the validity of the land title held by the seller. If the title were later deemed invalid or found to be fraudulent, the buyer lost his investment.

 

Five Things Buyers Should Know About title Insurance:


1.Buyers mortgage lender is going to require it. Title insurance protects the lender and the secondary markets to which they sell the loans from defects in the title to your home and property. It ensures the validity and enforceability of the mortgage document. Title defects could include mistakes made in the local property office, forged documents and claims from unknown parties. The amount of the policy is equal to the amount of your mortgage at its inception. You pay a one-time fee as part of your closing costs. If you are purchasing a home, you should also purchase an owner’s policy which provides coverage up to the purchase price of the home you are buying. In some states it is customary for the seller to purchase the owner’s policy on your behalf. In Texas this is negotiable however 99.9% of the time seller pays for the owner's policy but buyer pays of insurance policy.

 

2.Buyers have the right to choose! And it’s now it’s easier than ever. You can shop around for a lower insurance premium rate on line at sites including, EasyTitleQuote.com and FreeTitleQuote.com.  You can also ask your lender or real estate professional for help in getting quotes.

 

3.Check the companies out before you select one. Make sure the title insurance company you choose has a favorable Financial Stability Rating® with Demotech, Inc., the leading title insurance rating company (www.demotech.com).

 

4.It’s easy to save money on title insurance. Request quotes from a few companies and then reach out and speak to them. Ask about hidden fees and charges which could make one quote seem more attractive than another. Ask about discounts. There are often discounts available if you are refinancing and sometimes even when you are purchasing if the current policy issued to the seller on the property isn’t too old.

 

5.Even new construction needs coverage. Even though the home is new, the land isn’t. There may be claims to the land or liens placed during the construction which could negatively impact your home.

 

In April 2007 United States Government Accountability Office (GAO) Report on Title Insurance, the GAO recommended that state and federal legislators and regulators improve consumers ability to shop for title insurance based on price, encourage price competition, and ensure consumers are paying reasonable prices for title insurance.

Federal law called the Real Estate Settlement Procedures Act (RESPA) entitles the individual homeowner to choose a title insurance company when purchasing or refinancing residential property. I hope you enjoyed Five Things Buyers Should Know About Title Insurance.


If you or someone you know is considering buying a home in Northwest Austin, Leander, Cedar Park, and Lago Vista I would welcome the opportunity to consult with you or them about our many real estate possibilities Austin has to offer home buyers. Call Bob 512-587-5689

 

 Canyon Vista Realty Bob Ratliff Broker

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Bob Ratliff, REALTOR® (512) 587-5689 
TX Licensed Broker #492107 Information is deemed reliable but not guranteed, all rights reserved by Canyon Vista Realty

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Jerry Newman
Brown Realty, 210-789-4216,www.JeremiahNewman.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Hi Charles, Title Insurance is certainly a nice thing to have as a buyer. These are all nice tips to know. Have a Great Weekend!

May 24, 2013 06:45 AM #1
Rainmaker
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Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Good choice for a re-blog.  Home buyers need to know about the insurance needs and requirements.

May 24, 2013 07:36 AM #2
Rainmaker
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Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Great re-blog on title insurance, what it means and what it is for.

Make it a great weekend!

 

May 24, 2013 08:53 PM #3
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Charles Stallions

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