One fee you may pay when you buy a home is for an owner’s title insurance policy and for a lender’s title insurance policy. Title insurance for a lender assures the lender that you own the home free and clear, with no liens on it. When you buy title insurance a title company will run a title search to check public records for information on the home. When you get an owner’s title insurance policy, the title insurance company protects you from title issues that your real estate property might have had prior to your ownership. It may be fraud, it may be a lien that is not discovered, or another title issue. In these instance, the title company’s title insurance policy will protect you from undisclosed issues. Who pays for the title insurance varies by state – sometimes it’s the buyer, sometimes the seller. Learn the ins and outs of title insurance here.
Is a general or special warranty deed better for selling property? When selling a residential property, the type of warranty deed you use, or title, isn't so important. A special warranty deed is usually used for commercial real estate sales. During the home sale process, a title company will run a title search and discover any problems with the deed or title. Usually a general warranty deed is used when selling a residential property.
A homeowner is having trouble demonstrating ownership of his home to address issues with a siding contractor. He has tried to establish that he is on the title of their home with a quitclaim deed. Title insurance could solve this problem and prove that the title was transferred to him as the owner.
When you put a property in a revocable trust, you also need to be sure the title insurance policy coverage is changed. Title insurance assures the lender that you own the home free and clear, with no liens on it. When a home buyer sells the property, the subsequent buyer should buy his or her own title insurance.
After paying back and current taxes on a property that was quit claimed to you, can you take full title to a property? The answer? It depends on how the quit claim deed was drafted and what its intent was.
What can you do if you receive property tax bills that were the responsibility of a previous owner? The title company who provided title insurance at the closing should be responsible for the costs. The title company certifies that a title is free and clear of all tax obligations at closing. All costs, including taxes, should be determined at closing.
After purchasing a property in foreclosure, you could receive a notice for back taxes. Make sure you get the title commitment and owner's title insurance at the time of purchase. Even though it is a foreclosure property, you need to make sure all title problems and tax issues are resolved.
A title insurance professional comments on title insurance problems and why they happen. Problems may stem from conflicts of interest in which real estate agencies also own a mortgage company and a title company but don't disclose the relationship.
A former title insurance processor comments on the causes of title insurance problems and gives a bit of advice that may help you with your title problems. While some of the problems are with the title companies themselves, many filter down from the mortgage companies. The biggest piece of advice from someone in the industry is to remain polite. A good attitude will help your deal much more than getting angry.