How to Buy a Home with Better Title Insurance

Buying a Home? You Need a Good Title Insurance Policy.

Are you about to buy a home? Then here are a few simple reasons why you need to buy a home with good title insurance.

A title insurance policy and agent should always keep the home buyer’s interests first in mind during a real estate purchase. That’s because they are likely the only party involved in the transaction who has limited experience with the process and plenty to lose because of this. More reason to protect the home buyer’s interests with better title insurance.

Here’s what you can expect with better title insurance:

Purchasing a Clear Title

Who knew you could buy a home and not actually own it? You must possess a “clear title” to own the home. If a real estate or title agent doesn’t take the time to research hidden claims to the property, then you might not even own after buying a home. This is because someone else may have actually inherited the home without receiving notice, the deed or title. In addition, the seller may actually lie about the conditions and not actually own the property or fail to disclose information about liens or lawsuits pending. A good title insurance policy protects home buyers from future claims, liens, or losses with the property by compensating the purchaser.

Specialized Endorsements that Protect Buyer Interests

Is there something in particular about the property that you wish to protect? Specialized endorsements can both restrict and enhance the protection of your title insurance policy. Title endorsements are less common and include forms to cover condominiums, environmental protection measures, restrictions/encroachments/minerals, and reverse mortgages. Title endorsements are calculated into the up-front cost of closing and paid as a one time only fee.

Securing Compensation in the Event of Loss

When choosing title insurance, both a home buyer and real estate agent need a title company that has an excellent track record of protecting its clients. That’s because in the event a defect with the title arises, you are guaranteed the cost of your losses. For instance, consider the possibility that there is an undisclosed heir to the property. In this case, you lose the entire value of what you paid upon purchase, since the home was never actually available for legal sale.

Other common title issues include structures that don’t adhere to building standards, thus are not actually worth the selling price. It’s up to your underwriter to investigate the actual worth of the home.

Defending Against Property Claims

What if someone claims they rightfully own the property? Your title insurance policy is an official statement of your right to the property in question. This means that a good title insurance company must stand by what’s written in the title insurance policy. A better title insurance policy is written in such a way that there is no question to your right to the title and the company is willing to stand by these claims. If you have the right policy, you can avoid the costly lawsuit of defending your title and the additional losses that occur should you lose the case and even the home.

Are you in need of a better title insurance policy?

Good title insurance means you’re covered when buying a home. BNTC is a team of real estate legal and mortgage lending experts offering a better closing experience. Contact us to work with a leading company in the industry.