Q: A real estateReal Estate is land and anything permanently attached to it, such as buildings and improvements. agentAn Agent is an individual who acts on behalf of a consumer. A real estate agent represents a buyer or a seller in the purchase or sale of a home. Licensed by the state, a real estate agent must work for a broker or a brokerage firm. An insurance agent helps a consumer purchase an insurance policy. Insurance agents are also licensed by the state.A Real Estate Agent is an individual licensed by the state, who acts on behalf of the seller or buyer. For his or her services, the agent receives a commission, which is usually expressed as a percentage of the sales price of a home and is split with his or her real estate firm. A real estate agent must either be a real estate broker or work for one. recently prepared for us an assessment of the local market and told us what price he thought we’d get for our home.
In this assessment, he also listed the expenses we could expect to pay during the sale. One expense was for titleTitle refers to the ownershipOwnership is the absolute right to use, enjoy, and dispose of property. You own it! of a particular piece of property. insuranceTitle Insurance is insurance that protects the lenderA Lender is a person, company, corporation, or entity that lends money for the purchase of real estate. and the property owner against losses arising from undisclosed defects or problems with the title to property.. He said we “couldn’t avoid” buying title insurance.
Why should I purchase this insurance when my house is paid for?
A: Unfortunately, your agent is probably right. In many places, a home seller has the burden of proving that he or she has good title to the home. The common way to prove you have good title is to buy title insurance.
Title insurance companies provide the service of searching the public records and furnishing a report called a title insurance commitment. The commitment outlines who owns the property and what, if anything, affects the title to the property. Some of the items that may appear on a title commitment are mortgages, other liens, recorded easements, homeowner association declarations and restrictions.
The cost of title insurance varies greatly from state to state. Depending on whether the state regulates title insurance, the cost is higher or lower. For example, title insurance on a $100,000 home in Illinois would run about $600. In Texas, a similar policy would cost $1,171.
The big mistake is for you to think of title insurance as a real insurance policy. Instead, think about it as a cost of selling your home. Because what you’re really doing when you buy that policy is proving to the buyer that you have the right to sell it.
Published: Apr 2, 2004