Many Buyers do not understand Title Insurance. When we are representing Buyers, it is important to help Buyer's understand the significance of title insurance in the home buying process. It's important they realize that it's not just a "wasted" cost.
A title company serves two main functions in the real estate transaction.
- A title company facilities the purchase by managing the numbers and settlement paperwork, then disbursing the funds at closing.
- Performing a title search and issuing a title insurance policy is a title company’s second function. When you borrow money, the lender requires a lender’s title insurance policy.
Title insurance is a type of insurance policy meant to protect home buyers, as well as lenders, from any damages or losses caused by a bad title. Did you know about 25% of all real estate transactions have issues with title?
The cost of title insurance may varies and is based on the price of the home. Your client may never need title insurance, but they will be glad to have it if they do find themselves with a title issue!
Even if not required, I wouldn't buy a home without it!