Does the Title Company Determine a Title is Valid?

March 9, 2017 Facebook Twitter LinkedIn Google+ General,House,Residential

The first thing a title company will do is prove the legitimacy of a property title. Confirmation will put you, the buyer, at ease. You’ll know you’re the rightful owner of the property. The title company wants to be certain no one else will lay claim to the property. The title company will look for outstanding mortgages, judgments, liens or unpaid taxes associated with the property. Neither party wants another person or business claiming ownership of the asset you’re buying.

You might be asked for a property survey to determine boundaries of the land, so neighbors can’t claim encroachment. Both parties worries will ease.

What is Title Insurance?

A title company will issue a title insurance policy only after they confirm the title to be valid. The policy protects lenders or owners in the event a claim or legal fees are filed over disputes of ownership of covered property.

A title company will offer two main types coverage. Owner’s title insurance, which will protect the property owner from issues with the title. The other, Lender’s title insurance, which protects the mortgage company. As the home buyer, you’ll pay for the lender’s title insurance when you close on the house. It’s a good idea to make sure you have an owner’s title insurance policy as well.

Say you purchase both buyer and lender’s title insurance after you buy your home and then someone files a claim against you, stating they’re the rightful owner of the house and they’re correct. The title insurance policy will pay you the value of your home and the lender the amount they lent you to buy the house.

How to Choose the Right Title Company

When trying to find the right title company for you, ask around. People who’ve purchased a home in the past, or your real estate agent or your lender. They can all offer you a recommendation.

You’ll want a company with years of experience. Ask them how many transactions they’ve done when it comes to titles. Another good place is the Better Business Bureau for claims against the company itself.

You’ll want to shop for the best rates and ask if it covers your full purchase price of the home or if there are exclusions.

It’s up to you to do your homework on the companies and choose the one right for you.

What makes Wyoming Title and Escrow different from any other local title insurance company? Our skilled and knowledgeable team! At WTE we understand the value of great service and seek to provide it with integrity, to best serve our local community.

WTE is backed by the strength of Mother Lode Holding Company, which has serviced the nation’s real estate industry for over 40 years. We offer exceptional title insurance and escrow services throughout Teton County and Lincoln County. Our clients repeatedly tell us that we are the experts in our industry and we appreciate their support.

County Title Inc., states they understand that a home is usually the largest single investment any of us will ever make. When you purchase a home, you will purchase several types of insurance coverage to protect your home and personal property. Unique coverage know as title insurance protects against hidden title hazards they may threatened your financial investment in your home

What to Expect the Title Company to Charge

Title insurance costs vary from state to state and will depend on the size of your loan. The premium is a one-time fee, which is good for you, at the time of the closing. The premium is not an ongoing expense.

Look for a discounted rate on your title insurance if you know the property sold within the last five years. It won’t hurt to ask.

How often will you meet with the Title Company?

It will depend on how quickly you chose a company to use. You might meet on multiple occasions or very few times. Another consideration will be what the company will handle for you. Are they maintaining your escrow account? You may need to contact the company with questions.

Maybe they’ll be handling your closing. That requires an in-person meeting with a settlement agent. The settlement agent will go over all the documents and explain the settlement before signing. If something is wrong with the title, you’ll likely need to meet an agent in person.

Remember you should always feel free to call your title company whenever you have questions relating to your title search, title insurance or title abstracts.