In the US, for example, in Florida, buying and selling property is mostly through what is called a title company. Real Estate transactions can do privately with the help of attorneys and title companies. There are different methods to complete a real estate transaction, but not all of them are equally practical. A lawyer can make a perfectly legal transaction. Unfortunately, this will not guarantee property title should a problem arise in the future with the right to property. Countless situations may arise with the ownership of property that you never know in advance that may arise, but be forewarned you can be helpful.
The title insurance of the owner protects the owner if someone claims and says they have a claim on the house before the owner bought it.
When you buy a home, you receive a document that is usually called a deed, which indicates that the seller transferred the property, or the “title” of that home, legally. Title service company can protect you if someone files a lawsuit later and says you have a claim against the home before you bought it. The most common claims are usually filed because the previous owner did not pay the taxes or because certain contractors did not charge for work done on the home before you bought it.
Most lenders require the buyer a title insurance policy for the lender, which protects the amount that the lender provides. You may want to buy a title services policy for the owner, which can help protect your financial investment in the home.
In Florida, most transactions are between individuals (often represented by their real estate agents and other professionals such as lawyers and accountants) and support what is here called “Title Company” to carry out the transaction.
Main functions of a title service company:
- Search and analysis of title to issue a title insurance commitment property. With this step, these companies do their research the history of this property tenure. This process will help them decide whether to issue a property title insurance. It’s like buying medical insurance; the company makes its assessment of the candidate before granting it.
- Carry out the closing of the sale. In particular, the company handles all the necessary documents to carry out the real estate sale. Some title services also act as an escrow and make the necessary payments to all parties involved. This gives you a lot of transparency to the transaction.
- Finally issuing title insurance property to the buyer and the financial institution that guarantees the property title in the transaction. First, they committed and now issued them title insurance property buyers and the bank in case there is a mortgage loan.
As you can see, the title company performs several functions during the transaction that guarantees clear title to the purchaser. This gives you the confidence that your investment is insured against any possible future problems related to the ownership of that property.
Who pays the title insurance policy property?
The custom in most states is that this is paid by the property seller as this ensures he or she is selling a property with clear title. Costs do not vary much between companies and securities that are regulated by a state commission. What varies widely is the quality and effectiveness of its management service. This is the main differentiator.
You can compare prices of title service company separately from your mortgage. If you compare the prices of title insurance, you can save money. If you decide to buy title insurance for homeowners, the total cost may be less if you use the same insurance company for both the lender’s and the owner’s policies, compared to buying them separately.
As you may have been advised, it is necessary to have title services when making any real estate purchase. It is a form of security as it is an added measure that the title you are buying is clean and limit your problems later. A title company will not give you insurance if it does not have the full assurance that you get clear title. If they came to escape a detail and you get to have problems with the title, later on, they will handle your loss.
If you require additional details about title insurance property, send us a message or stay tuned for future articles.