You’ve found the house of your choice, and you completed the negotiation with the seller. Now, the real process of buying a home start. One of the crucial steps in the titling process is getting a title insurance service. If you apply for a mortgage, your lender will require you to get a lender policy. Even if you will not request a mortgage because you can pay by cash, it is still wise to get a title insurance.
Initial application for title insurance
So that you can start the title insurance process, you have to contact your title insurance service provider. The company will provide an initial response within 24 to 48 hours. You may be issued a preliminary report with minimum information, even without identifying the buyer or the terms of the sale. It will show the present record of the title, and it is only an offer to provide insurance. To order a preliminary report contact your representative.
Search and examination of the original titles
The official title search performs three searches: property searches, name and taxes. From this information, a preliminary report is created. A customer service center site streamlines the process of obtaining hard copies of the documents filed. The imaging helps simplify searches with the ability to get documents online.
The skill, experience, and knowledge of title searchers in the real estate law are critical to supply a report that is useful and accurate. Once the report was issued, the review begins with a technical analysis of registration documents. An interpretative review of all matters registered to assess their impact on the title of the property is made. Among the questions asked by the examiner are the following: Will any of the matters recorded prevent the buyer from using the real estate for its intended purpose?
Can the outdated leasing contract policy be removed by a review of the current leases?
The title service company will conduct a site inspection in anticipation of ALTA coverage. From the inspection report, the initial title product is supplemented to show any invasion or any other matter that is off the record that ultimately could affect the title.
The title insurer will insure up to the total sale price or the total loan amount. If it can’t meet the required amount, it will employ another title insurance company to insure the remaining amount. The premium paid to the reinsurer title company is deducted from the title fees; the parties an additional charge does not apply. Title Department manages the reassurance when requested by the proposed insured or based on insurance limits self-imposed or statutory title.
There are times that the proposed insured amount cannot be fully insured by the title insurance company since it can only insure up to a certain amount. That is it can not guarantee the total selling price or the total loan amount. The insurance company must employ another title insurance company to ensure the rest of the total sale price or the total loan amount. If a transaction is co-insured, customer fees are charged based on each company filed part of the total liability covered by that company. The customer can choose the desired co-underwriting company.
The last step in acquiring title insurance for your new real estate is to make the payment. You will only pay the premium amount once, unlike other types of insurance where you have to pay regularly, either annually or monthly. The premium cost will be paid at the closing along with other transaction fees such as taxes and legal fees.
The title company should earn respect with skills, service, and solutions. The title company should not point out impediments to closing a transaction without offering at the same time help and solutions. By understanding the delicate balance sometimes between the interests of the parties involved in a transaction, and managing professionally and courteously the problems as they arise, title companies can guide a sales transaction to a successful conclusion.