Rachael Ossovicki | title insurance

Why Home Buyers Need Title Insurance

Did you know you still need to confirm the home can actually be yours?

Congratulations, you’ve purchased the home of your dreams! Did you know you still need to confirm the home can actually be yours? Most real estate transactions use a contract to execute a sale between two parties: the seller and the buyer. If there were any issues or changes to previous deeds that caused the transfer of ownership to go wrong, the seller might not technically own the property – which means they can’t technically transfer it to you, either.

Your mortgage lender will also require a “chain of title,” which shows the history of ownership and transfers to confirm the true owner of the property. Any complications that arise must be noted before eligibility of sale is confirmed.

Five things to know about your home’s title transfer:

● Property restrictions are common.
● You could be buying from a fraud.
● Not all titles are “free and clear.”
● Errors in descriptions are fatal title defects.
● New owners must be recorded on public record.

What is title insurance?

Title Insurance confirms the seller has free and clear ownership of the property and is eligible to transfer that ownership to you, the buyer. Your title insurance agent conducts research to confirm that the history of the property matches what is stated in your contract.

Title insurance protects the home buyer and lender from claims to the title, granting full ownership or right to the property. It’s also important to note a title search, review and commitment is evidence of a clean deal.

Why exactly do you need title insurance?

The purpose of title insurance is to discover all of the issues that could affect a home buyer’s full enjoyment of the property or a lender’s right to the total property value amount. For example, a future neighbor may have a fence that extends into your yard or there could be unpaid property taxes. When you move into your new home, these are headaches you’ll want to avoid.

We hope this information has been useful to you so that you have a better understanding of the importance of title insurance. Contact us today at Mutual Title if you have any additional questions or would like to enjoy a better closing experience.

We thought you'd also like to know...

Millennials and Homeownership

What’s the Big Idea?

Loan Officer
Homeowner
Home Buying Tips

Who Owns the Home When Two Names are on the Mortgage?

The difference between Title and Mortgage

Home Buying Tips
Buyer/Seller
Loan Officer
Title and Escrow

Home Buying Tips for Offer Rejections

House hunting is fun. Until it isn’t.

Home Buying Tips
real estate agent
Loan Officer
Buyer/Seller

How to help millennials understand the benefits – and possibilities – of homeownership

Once they understand their possibilities, here are four more reasons to help millennials make the move to homeownership:

Home Buying Tips
Loan Officer
real estate agent

3 Ways Loan Officers Can Strengthen Relationships With Real Estate Agents

Here are three ways to build strong foundations and long-lasting relationships with real estate agents:

real estate agent
Loan Officer
Marketing

Searching for a Title Company

When it comes time to select the title company, keep the following in mind:

title insurance
Closing Process
Buyer/Seller

Spring Market Tips for Real Estate

As a seller, buyer or loan officer, here are steps you can take to get ready for this busy time of year.

Loan Officer
Home Buying Tips
real estate agent
Buyer/Seller

7 Great Referral Sources for Loan Officers

Consider these examples to embrace these important referral sources and increase referral business

Loan Officer
real estate marketing