How to Search For a Title When Buying a House

How to Search For a Title When Buying a House

You’re not the expert – that’s what your real estate attorney is there for!Both your attorney and lender say you will also need home title insurance before the closing is complete. What will it cover? Let’s compare it to health insurance which may be difficult to obtain with any history of health issues. Similarly, title insurance companies won’t insure properties with a history of unsolved real property problems. Perhaps there is an easement for a right-of way nearby, or an unpaid tax lien, or a previous flood situation in the cellar.The title examiner issues a preliminary document called a commitment which catalogs any defects or problems that the seller must repair before the closing. If these issues aren’t resolved, and the repairs completed, the company won’t cover the policy. You may choose to live in the house as is, or walk away from the table. But you need a clear title from the seller. If the title insurer will not write the policy, you have a big decision to make about living there. You may or may not know about any potential hazards you might face with neighbors, the town, wetlands, electrical or gas underground lines, or other problems that might arise.Many mortgage lenders require you to buy a Mortgagee Policy in the name of the lender. It insures the validity of the mortgage as a lien on your property. If you want title protection as the owner, you must buy a separate policy protecting your own interests.There are two kinds of title insurance – for the lender, called a Mortgagee Policy, and for the owner, called an Owner Policy. Owner title insurance covers all of the value of your property, more than just the value of the loan you secured. It specifies that there are no other defects, liens or encumbrances than the ones listed on the title policy. You can sell your home without restrictions. You have a legal right to access your property from any angle without question. If your title is challenged, the defense and costs will be covered by the company that insured you. Title insurance is a onetime payment made at the time of the sale.Also, the Owner Policy protects you for the entire time you are the owner as well as after ward’s, when you might become liable to the next owner of your home. You will be covered for the same issues mentioned above as long as the issues are within your coverage.Protect yourself and your family. This is the biggest financial decision you will probably make in your lifetime. Make it wisely. Hire an experienced, knowledgeable real estate attorney. One who will work with you patiently and thoroughly to protect your interests. One who will give you legal options and outline solutions for any problem you may have encountered before and has the experience to anticipate any problems you may have in the future.