Tips for choosing a title insurance company for residential real estate

TIPS FOR CHOOSING A TITLE INSURANCE COMPANY FOR RESIDENTIAL REAL ESTATE There are many steps involved in purchasing a residential real estate. Unless you are a professional that regularly engages in buying and selling real estate, you probably are not familiar with all of the steps. Getting approved for financing, defining the criteria that satisfy your real estate needs, securing the necessary home inspections, understanding how much to offer for the property, and what type of close (quick close, contigency, etc.), are a few of the more obvious steps.

A critical step that many new homebuyers do not have familiarity with is finding a title insurance company for your purchase. While you likely have vetted property insurance companies and worked with your lender or real estate agent to chose the best company for you, property insurance does not cover all of your insurance needs. Title insurance helps protect you from any liabilities that arise if the title of your property is ever in dispute. A title insurance company will certify that the title you receive as part of your purchase is based on a legitimate transfer and claim of ownership.

Should the validity of the title that you receive ever be questioned, your title insurance helps to protect you and your lender against liability.

Lenders require title insurance to protect their loan investment in your home.

Prior to closing, title companies typically hold closing funds in escrow accounts to make sure closing occurs smoothly and without issue. Following closing, these companies also take responsibility for filing the new titles, deeds and supporting purchase documentation with the appropriate governing bodies. Because these companies represent such an important step in the homebuying process, homebuyers need to understand what to look for when selecting a title company to represent them in the purchase of their new home.

How to Choose a Title Company as a Consumer?

Search for a company with years of title insurance experience. Request specific details about the number of transactions they have managed.

Location. Location. Location. This basic tenet of real estate applies to title insurance.

Understand what areas the title company typically practices in and select a company that has specific expertise with the market where you are purchasing.

Specialized experience relative to state or loan regulations that are in addition to basic title insurance requirements. An example would be purchasing a home as a trust rather than as an individual.

Ask for success rates – how often do have their clients had to defend titles against disputes? This speaks to the thoroughness of the company’s research and vetting process for certifying title ownership.

Check with the Better Business Bureau and government regulatory agencies to understand if there have been any complaints against the company from consumers.

Reputation is everything.

Use referrals and recommendations. If you have friends that have purchased homes recently, they may have a preference for a specific title company. Referral typically help ensure greater satisfaction. If you can’t rely on friends, search for online reviews and recommendations.

After checking all of the above, be sure to research your rate. While it will be largely dependent upon the loan amount and vary by state, you may be eligible for a discount if the property has been sold within the last five years.

Often your real estate agent or lender will have preferred title companies that they have previous experience working with on residential property purch

Sources: https://artesiantitle.com/

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