What does a title company do?
A title company such as Reputation First Title Agency works with you through the entire process of buying or refinancing a property. Title companies…
- Provide a thorough title search to make sure that the title is clear.
- Prepare and organize all documents and paperwork for the closing.
- Manage the escrow account.
- Facilitate the closing.
- Record all signed documents after the closing.
And that is just a broad overview!
Is a title company really necessary?
You are not legally required to hire a title agency when purchasing or refinancing real estate. However, working with one can bring many benefits. For instance, they offer title insurance. And that alone can mean the difference between being protected - or not - should a title defect appear down the road.
What is title insurance?
Title insurance protects against any title defects that may arise after a property is purchased. Unlike other insurances that protect for future events, title insurance protects you - the owner - from everything that happened prior to you becoming the owner.
Is title insurance required? What are the risks?
Although it is highly recommended, you don’t need title insurance for yourself -- and it is not required for you to close. Unless, of course, you are financing the property. There is a very high chance that the mortgage company you use will require you to have a title insurance policy to protect their interest.
Without it, should a defect in title appear while you still have interest in the property, you may find yourself in a big fight - financially and legally.
Risks come when defects such as the following appear:
- Fraud and/or forgery
- Tax liens
- Missing heirs
- Judgments and liens
- Conflicting wills
- Public record errors or recording errors
- Encroachment with neighbors
- Clerical errors or omissions
With title insurance, you simply need to submit a claim as stated in your policy.
What is the difference between an owner’s title insurance policy and a lender’s policy?
While both of these title insurance policies work to protect against title defects, who they protect is different for each.
An owner’s policy is one that you would purchase to protect your own interests in the property. Should any issues arise that make the title questionable, you will be protected financially and with a legal defense thanks to the policy. Without it, not so much. Your owner’s policy will remain in effect as long as you have an interest in the property.
A lender’s policy is slightly different, although it protects against title issues, too. It is concerned with protecting the lender and its interest in the property. It is valued for the amount of the mortgage and, once the loan is satisfied, the lender’s policy is no longer valid.
Does Reputation First Title Agency Offer remote closing options?
Absolutely! Reputation First uses advanced technology and various platforms to allow smooth and efficient remote closings, bringing you both comfort and convenience.
How can I learn more?
If you are ready to learn more about the advantages of a full-service title company with a quick turnaround time, contact Reputation First Title Agency today at 734-432-0100.