TIPS FOR CHOOSING A TITLE INSURANCE COMPANY FOR RESIDENTIAL REAL ESTATE

TIPS FOR CHOOSING A TITLE
INSURANCE COMPANY FOR
RESIDENTIAL REAL ESTATE
There are many steps involved in purchasing a
residential real estate. Unless you are a
professional that regularly engages in buying
and selling real estate, you probably are not
familiar with all of the steps. Getting approved
for financing, defining the criteria that satisfy
your real estate needs, securing the necessary
home inspections, understanding how much to
offer for the property, and what type of close
(quick close, contigency, etc.), are a few of the
more obvious steps.
A critical step that many new homebuyers do
not have familiarity with is finding a title
insurance company for your purchase. While
you likely have vetted property insurance
companies and worked with your lender or real
estate agent to chose the best company for
you, property insurance does not cover all of
your insurance needs. Title insurance helps
protect you from any liabilities that arise if the
title of your property is ever in dispute. A title
insurance company will certify that the title you
receive as part of your purchase is based on a
legitimate transfer and claim of ownership.
Should the validity of the title that you receive
ever be questioned, your title insurance helps
to protect you and your lender against liability.
Lenders require title insurance to protect their
loan investment in your home.

Prior to closing, title companies typically hold closing funds in escrow accounts to
make sure closing occurs smoothly and without issue. Following closing, these
companies also take responsibility for filing the new titles, deeds and supporting
purchase documentation with the appropriate governing bodies. Because these
companies represent such an important step in the homebuying process, homebuyers
need to understand what to look for when selecting a title company to represent them
in the purchase of their new home.
How to Choose a Title Company as a Consumer?
Search for a company with years of title insurance experience. Request specific
details about the number of transactions they have managed.
Location. Location. Location. This basic tenet of real estate applies to title insurance.
Understand what areas the title company typically practices in and select a company
that has specific expertise with the market where you are purchasing.
Specialized experience relative to state or loan regulations that are in addition to
basic title insurance requirements. An example would be purchasing a home as a trust
rather than as an individual.
Ask for success rates – how often do have their clients had to defend titles against
disputes? This speaks to the thoroughness of the company’s research and vetting
process for certifying title ownership.
Check with the Better Business Bureau and government regulatory agencies to
understand if there have been any complaints against the company from consumers.
Reputation is everything.
Use referrals and recommendations. If you have friends that have purchased homes
recently, they may have a preference for a specific title company. Referral typically
help ensure greater satisfaction. If you can’t rely on friends, search for online reviews
and recommendations.
After checking all of the above, be sure to research your rate. While it will be largely
dependent upon the loan amount and vary by state, you may be eligible for a discount
if the property has been sold within the last five years.
Often your real estate agent or lender will have preferred title companies that they
have previous experience working with on residential property purch
Sources:
https://artesiantitle.com/
http://jonesraulston.com/