Title Insurance Protects Your Ownership

Purchasing a home is probably the single biggest investment you will ever make. Before closing on the house, you'll want to know that no other individual or entity has a right, lien or claim to the property. Title insurance protects your ownership and monetary stake in your home should someone else make a claim of ownership to your property after closing.

For a modest, one-time title insurance premium, you will receive continuous title insurance protection in an amount equal to the purchase price of the property or its current market value. This premium typically includes your "owners" policy as well as the "lenders" policy.

One of the marked advantages of title insurance is that prior to a policy being issued, the title insurance company completes extensive research into relevant public records, maps and documents to trace ownership of the property and determine if anyone other than you has an interest in the property. Through its research, the title insurance company can usually identify any title problems that may arise and have these problems cleared-up prior to closing.

There are two types of Title Insurance: There is the lender’s title insurance policy required by your lender because the bank wants to ensure its loan is protected from title claims. There’s a second, optional policy known as the owner’s title insurance policy, which most home buyers choose to purchase as well.

Joe Gentile, an attorney at Federal Title & Escrow, says that “There are two kinds of owner’s title insurance. The limited policy, also known as a standard policy, covers issues that should have been identified and resolved prior to closing, such as forgery or fraud or a third-party who claims interest in the property. The enhanced policy covers many more pre-closing issues as well as a host of post-closing issues that can arise such as building permit violations, encroachments, contractor liens, or post-closing fraud, forgery and identity theft.”

Federal law grants home buyers the right to choose their title service provider. Many home buyers don’t realize they have a choice. They just go with whatever company their real estate agent recommends. The Consumer Financial Protection Bureau has been cracking down lately on the cozy relationship some agents have with title companies.

Homebuyers find the paperwork they sign can be lengthy and realtors try their best to explain everything you are asked to sign. However, if the document has prefilled the name of the title company in the real estate contract, be wary. That will be viewed by the CPFB as a violation against a homebuyer’s ability to shop for and choose their own service providers during the home buying process.

Many state real estate commissions are adding language to their laws to discourage licensees from steering their homebuyers toward specific lenders or title companies. In Maryland, for example, they’re revoking real estate licenses, handing out jail time and

The practice that is now out-lawed, is thought to restrict the homebuyer’s choices and inflate costs. You as a consumer want to know that the service providers are the best and your broker has no conflicts of interest.

Red Hill Real Estate Solutions, LLC. is here to help homeowners out of any kind of distressed situation.  As investors, we are in business to make a modest profit on any deal, however we can help homeowners out of just about any situation, no matter what!  There are no fees, upfront costs, commissions, or anything else.  Just the simple honest truth about your home and how we can help you sell it fast to resolve any situation.

Give us a call today at 951-356-5440 to let us know what YOU need help with!