5 Things You Need To Know About Title Insurance

Buying a new home is great and exciting but there"s more to it than just finding the right home at the right price. Today, we"ll try to expand further on the thing called title insurance. What is title insurance? Why do you need title insurance for your home? What can title do for you as a property owner? With the help of our resident real estate expert, let"s all discuss the details on today"s article.

Title Insurance Defined

Basically, title insurance ensures that the title of your home-to-be is free of any issue or legal claims. A title gives you an opportunity to own and sell a particular property which makes it quite crucial to be free of any unwanted issues. To be clear, this is not your home insurance so, it doesn"t cover any damages done at your home.

Title Search and Uncovering Dirty Secrets

A title search is defined as an examination of all documents that is related to the ownership, history and condition of the property to find out any underlying issues. Not doing a title search could compromise your whole dream of acquiring your own home. An experiences title service company can conduct a title search to uncover hidden and dirty title claims you would be willing to avoid. On of the claims that you might is ownership claims. You can never be sure if the title or the sale is legit and you might find yourself losing the property to an unexpected owner of the property. Some people might pose as the owner and trick you in the process of buying the house but a title search can protect you from such instance.

Two Different Policies to Understand

There are generally two type of policies that protect the interest of two different people. If you plan to get a mortgage loan, you might be required to get a lender"s title insurance which protects the lender from any issues regarding your acquired property. If you want to protect your rights as a homeowner, then you would more likely acquire an owner"s title insurance which can give you protection as long as you own the property.

You Only Pay Once for a Owner"s Title Insurance

If you"re concerned about the cost of an owner"s title insurance, you might feel relieved for the fact that it only includes a one-time fee. Coverage of the policy lasts until you hold an interest in the property. On the other hand, loan policies are ineffective once the loan has been paid off.

Taking Title or Registering the Title

There are common ways to taking title which can depend on whatever situation you"re in:

  • Sole Ownership – If you"re single, you would hold the title in your name alone.
  • Tenants in Common – Each tenant owns a specific percentage in the property which they can share or pass on to their heirs.
  • Joint Tenancy with Rights to Survivorship – Tenants equally own the property and upon the death of one, the other gets full ownership.

If everything still seems to be a blur, you can definitely ask your title insurance professional for more details about how can title insurance do much benefit on your behalf.


Real Estate Tips: Buying A New Home

Finally, you"ve come to an important time in your life when you would buy your own home!

But, there is so much to consider before diving in head first to get the best experience in home-buying.

First of all – have a loan commitment from the bank. It can be easy to get carried away in the heat of battle. Get yourself a picture of what different items cost. Then you will be a good buyer. Once you get into buying opportunity, compare banks and negotiate interest rates.

Make an inspection. Do not ignore your gut feeling at the house demonstration. The seller has a general duty to describe their home, but as the buyer, you have the duty to investigate. Make your own inspection to any discovered deficiencies and renovation needs. Check the house, land, buildings, electrical systems, heating, water, sanitation, white goods cooker and fridge, ventilation, possible fireplace and chimney.

Survey the property carefully. There might be some things that the seller might not disclose and those just might be parts that are particularly important. Hire your own expert if there is something that seems to be wrong. If there are visible signs of moisture damage or other damages, you need to take not right away as it would be the seller"s responsibility.

Bids are not binding. Bids are not binding until the purchase contract is signed. Deposits are usually ten percent of the purchase price. Be extra careful when it comes to inspection clauses and return conditions. It is not unusual to have not had time to do a survey when you write the purchase contract. Then you can ask for a contract clause that you have the right to request the return of the purchase within a certain time.

Protect yourself. You can protect your rights as a buyer by seeking the help of an escrow title company and get title insurance. A title insurance would shield you from terrible title claims that would turn your buying experience into a nightmare.

Things to consider before buying

* Be prepared. Make sure you have got loan commitment from the bank and you know what you can afford.

* Be diligent. Go on many shows, talk with many different brokers  to learn more about the market. Check the area you are interested in so, that you see the price picture.

house-2* Be careful. Read the inspection report carefully and read what is not included in the survey. Make your own inspection. Be careful and be aware that what may be costly on a house"s roof, drainage, electricity and heating systems.

* Ask questions. The difference between the duty and responsibility is great and the greatest responsibility lies with the buyer. Find out if the property is correctly measured by asking a surveyor. Ask the neighbors if there is something going on in the area that may affect the house you"re  planning to buy. They might have also an idea about the problems and the positive things about the potential property.

* Do not buy a home to speculate but, buy to live. You should feel comfortable in your home and no one can say for sure what is happening with the housing market in the long run. Most importantly, don"t be afraid to do some negotiations for what you get. You have right to buy something that deserves all your hard-earned money.