Fsbo

If you plan to buy a property, the sooner you learn about title insurance, the better. For many first time real estate buyers, the first time they hear about title insurance at the closing of their property. This article presents the basics of title insurance for protecting your new real estate acquisition.

Title Insurance:

Purchasers may require that a title search be done on the property and that a title agency issue a title insurance policy on the property. Purchasers may request this be done to ensure that there are no liens or encumbrances on the property that affect the property (and to determine what liens, mortgages and encumbrances need to be paid off and removed from the title to the property at or before closing).

The title insurance policy will insure against defects the title to the property. Although it is typical for the parties to negotiate who will pay the price or the split of the cost of the title search and/or title policy, a seller is under no obligation to provide or pay for the same. However, it may be in the seller’s best interest to agree to some arrangement on the payment for these services if such agreement leads to a successful sale and closing of the transaction.

Is title insurance worth the extra cost and paperwork? In a word, YES! Title insurance may not be the most talked about aspect of a property transfer but it is something that is hugely important. In a perfect world we would not have to worry about whether or not the person selling the home has the right to do so. They would have clear and free title to the property, enabling the swift transference of the property. It is unfortunate that we don’t live in a perfect world. Today’s real estate market has seen the gamut of real estate scams that are focused on title issues. Of course there are also more innocent issues with title, but those are not the ones that typically get noticed.

This entry was posted on Thursday, November 1st, 2007 at 11:53 am and is filed under FSBO. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Rate this post

(No Ratings Yet)

 Loading ...