Does the Real Estate Market and Title Insurance - Seem a Little Blurry to You?
Title Insurance..........Closing Costs..........Home Inspection..........Mortgages..........Price Negotiation..........Purchase Agreement..........Listing Contract..........Property Appraisal
LET ME CLEAR IT UP FOR YOU!!
FIRST: Let's talk about TITLE INSURANCE ..... WHY TITLE INSURANCE??????
I am a State of Tennessee Licensed Title Insurance Agent, I unwritten title insurance policies for Stewart Title Guaranty Company and First American Title Insurance. (First Licensed in Tennessee in 1986)
What is it? ..... Why do I NEED it? ..... How does it Help Me.?
Title insurance one of the most mis-understood items in the purchasing of real estate.
When you purchase a home and/or mortgage a home, instead of purchasing the actual building or land, you are actually purchasing the title to the property - the right to occupy and use the space. That title may be limited by rights and/or claims of others, which may limit your use and enjoyment of the property and even bring financial loss. Title Insurance protects against these types of hazards. Title Insurance protects you against loss from hazards and defects that already exist in the title and is purchased with a one-time premium. It does not insure you on future changes, nor does it have an annual premium.
- Two Kinds of title insurance Policies: Mortgage or lender protection and Owner's Protection
MORTGAGE POLICY: Most lenders require you to purchase a mortgage title insurance policy as a requirement of the loan. This is for security for their investment in the property. It has nothing to do with you or the actual structures on the land, only the TITLE to the property.
OWNER'S POLICY: This insures you the same as the lender and more, it lasts as long as you - your heirs - have an interest in the property that is insured. In addition, it may even cover you after you have sold the property.
- What Do You Get for your Premium?
It eliminates risk before insuring. which means you will have less chance of having a claim or loss, based upon the title to your property.
Title insurance starts with a search of public records. (Your county courthouse records). A title examination is done by the title agent, title searcher or attorney, at the direction of the underwriter. This is done to make sure they can insure the property. They obtain a "CHAIN of Title" or "History". This is done to find any objections to the title, many times the recorded documents don't clearly transfer title to previous owners or their is a break in the chain.
Here are some of the items they check that could contain concerns:
Deeds - Wills - Trusts, all could have improper wording, wrong names
Old Mortgages - Judgments - Liens - Taxes, that the seller or previous sellers did not pay or correct
Easements - types: ingress/egress - utility - shared driveways - drainage -
Incorrect or missing notary acknowledgments
Pending legal action against the owner or purchaser
The search and examination of the documents find the problems and when possible correct them before closing. But, even with careful search and examination not all defects of the title can be found... (see next section
- Hidden Title defects...
No matter how careful and detailed the search and examination some things can't be found, which could result in your losing the property, or having costly attorney fees, to defend your right to the property.
Forged signatures on deeds, which could mean you would lose the property
Heirs, that were unknown to a previous owner or deliberatly left off, can make a claim to the ownership of your property
Documents that were signed by a Power of Attorney that was a fake, or expired
Mistakes in the public records, mis-filed documents, wrongly filed documents
Title insurance offers you financial protection against these and other covered title defects. The title insurer will pay for defending against an attack on the title as insured, and will either perfect the title or pay valid claims - all for the one-time charge at closing.
Your home is your most important investment and usually your largest single investment in your lifetime.
Be sure the underwriter on your title policy is very reputable and has a record of handling claims quickly, efficiently and to your best interest.
I hope this helps clear up some of the mystery of title insurance.
Some of my information came from my Underwriting Manual from STEWART TITLE GUARANTY COMPANY.
Feel free to comment or ask questions. email@example.com
Doris Freeman Sherri Smith 'TEAM MOTHER-DAUGHTER of Reliant Realty
We sell homes and have homes for sale in Nashville, Hendersonville, Gallatin and all surrounding counties.