We know many people out there may not understand what title insurance is, especially if they are going through the home process for the first time. In fact, there has long been a knowledge gap when it comes to what we do as your title search, insurance and escrow company. But Premier Title Agency is here to change that with this brief explainer.
What is the title search?
As part of the closing process, we conduct a title search. This task includes searching public and private records to ensure that the seller has the right to sell the home. What exactly are we looking for? Everything from previously undisclosed liens, tax issues, ownership disputes and fraud, among other issues. It sounds complicated (and sometimes it can be), but we’re the ones you want sweating the small stuff to ensure your transaction gets to the closing table. It’s much more than just a Google search.
So, why do I need owner’s title insurance?
Think about it this way: Title insurance is protecting you against possible issues that haven’t come up yet – things in the future that couldn’t be found in our search. Owner’s title insurance is called the smart choice because it covers your ownership rights against claims that haven’t been made yet.
Such “unforeseeable errors in the title” that could arise include forgery, fraud and human error. This includes false documents, deception, identity theft and inconsistent paperwork. If you have a mortgage, your lender will take out a title insurance policy too. However, this only protects the lender’s interest in the property, not your ownership rights. Lastly, there are no yearly premiums when it comes to owner’s title insurance. It’s a low, one-time fee that protects the property as long as you or your heirs own it.
• We’ll conduct a title search before your transaction closes to make sure there are no title (the right to ownership) issues with the property in question.
• Owner’s title insurance is the smart option that will give you peace of mind by protecting your property ownership rights for as long as you or your heirs own your home.
• An owner’s policy is a single, one-time fee that is often part of a transaction’s closing costs.
• A title search looks for and unveils any current issues with the property while title insurance protects you against claims that haven’t been made yet.