Title insurance is an important part of the home buying process and should be approached seriously. It can protect you from any disputes that might come up with the ownership of the property. One in three title searches reveals a problem with the record which can usually be fixed before closing. But any problems that come up after closing are the responsibility of the homeowner, and that is why title insurance is so necessary. Here are 3 questions you should ask before purchasing title insurance.
Question 1: What Coverage is Needed?
There are some different levels of coverage available when buying title insurance. Standard insurance will protect a buyer from fraud, forgery, and undisclosed spousal inheritance or heirs. Additional coverage can also be purchased which can protect the buyer from land restriction clauses. You may also be required to purchase lender insurance so that the lender is repaid first in the event of a foreclosure.
Question 2: What Needs to be Paid?
Some states regulate the prices of title insurance so there shouldn’t be much difference in price between the companies. However, there are still some things you should keep in mind when choosing a title company. Pay attention to the quality of the insurance and the title search. Companies that have been around a while are ideal.
Question 3: Who Pays for the Policy?
The person responsible for paying for the policies (both the owner’s and the lender’s) can also vary from state to state. Sometimes the buyer pays for both, other times the buyer pays for one and the seller pays for the other. It’s worth keeping in mind that if you are required to purchase both policies, getting them both from the same company can often save you a lot of money.
A Title Company You Can Trust: Colony Title
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 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+.