Title insurance companies don’t always get it right. When they don’t, there are title problems. Title problems can include missing or false documents and documents filled out incorrectly. Title problems need to be cleared up before a home’s closing. Learn about some common title problems here and how you can protect yourself.
A homeowners has transferred the right to buy a property to a second party who in turn transferred it to a third party. There are certain legalities that must take place to insure that the paperwork is just right to make sure that title runs from the bank to the third buyer. The homeowner should try to get the bank to authorize the closing agent to transfer title to the third buyer
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 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.
A lot of newcomers have joined the title and mortgage industries in the past few years in order to make a fast buck with the recent real estate gold rush. But many don't know what they're doing and many more are overworked and that makes like difficult for buyers, sellers and agents.
Even if you're not legally required to buy title insurance, not buying title insurance is a mistake. Get title insurance and give yourself peace of mind. You might be very sorry if you don't get title insurance if there were errors in the conveyance documents or unknown issues that could cause a problem on your title.
Before you go to closing, ask about your title insurance protection, and be sure to protect your home with an owner's title insurance policy. Just because there is a title commitment does not guaranty that the seller can convey "good" title to a buyer. If the title company has done a good job searching the title to the property, you, as the buyer, will have a good understanding of the issues that will affect your title.
When a property line is incorrectly recorded it results in title problems, which can delay or prevent a home sale. To resolve this kind of title problem, you have to correct the documents filed with the homeowners association and possibly create an easement so that the property line becomes acceptable. It may also be worthwhile to ask the developer to modify the documents that describe the property line.