Why Buy Title Insurance?
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I’m no expert, but in the process of buying and selling houses in the course of my marriage, I learned a lot about the real estate game and the other industries that feed off of it.
One of the aspects of the whole buying a house process that was new information for me was the concept of title insurance. I’ve bought and sold two houses now, with one last house on the market. So, all of the little expenses and legal aspects of the process are still important for me to understand. It’s complicated, to my ears. Title insurance basically insures against losses caused by title problems that have their source in past events, like liens or deeds of trust still attatched to the property. You need to know if you are buying your home free and clear.
TGenerally, title companies work along with your lender or real estate agent. When we sold our house in Gainesville, we happened to like the title agent we had used to buy the house and asked to use him again in the process, since the buyers were from out of state and had no preference.
What I focus on is my rights in the arena of title insurance. The homeowner has the right to choose the title insurance companies they wish to work with, though more often than not the bank or attorney involved in the purchase or refinance will choose the company., Nonetheless RESPA laws say that it is not legal for a homeowner to be forced to use any one company. In the end, you still have a say. Obtaining a clear title is usually not a problem, but title insurance provides you with assurance that you are not going to lose valuable property in the future if there is a problem.
I’m not sure how it will be before I venture out into the current housing market again once we sell our house, but I can say that I’m much more educated in the process than I was when we bought our first house.
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