You’ve done it! You’ve found the home of your dreams. Before we can congratulate you, we must discuss title insurance. Most first-time home buyers are hopelessly unaware that title insurance exists. As a result, first-time home buyers often find themselves in a precarious situation. While title defects are not that common, they do happen. And being protected, understanding your options, and being smart is essential. Here is a handy guide for the first-time home buyer who needs a basic course on understanding title insurance.
Real Estate Jargon Can Be Confusing
As with anything you do for the very first time, it can be intimidating. The same can be said when you first purchase a home. There are all these words and phrases being thrown around that it can start to feel like your real estate agent is speaking an entirely different language. Instead of getting lost in the dark, learn the most commonly used terms and phrases used in real estate and what they actually mean.
- Title: A title is a document that delineates your ownership to the property. This is the proof that you own a specific property or home.
- Escrow: Escrow refers to the period of time when a third party (such as a title company) holds the funds for your home until the real estate transaction is finally ready to be completed.
- Title Search: A crucial step in purchasing a home. A title search will always happen during escrow. This is where a title company conducts a search of title to the property to ensure there aren’t any defects preventing you from having your home free and clear of any potential liens or other errors.
- Lien: When an individual owes money to someone else, that person can become the owner o the property until the debt is entirely paid off. This is usually the case when it comes to mortgages and previous owners leaving an unpaid mortgage on the property.
A Title Insurance Company You Can Trust: Colony Title Associates
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy and sell your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, LinkedIn, and Google+.