Selling or buying a property is probably the biggest transaction for the majority of people in their life. If you are on the selling side, you must know that a title insurance company plays a major part in safeguarding your interests. It is possible to sell your property even without being dependent on a real estate agent, but you must not neglect to associate with a title insurance company for utilizing their seller’s service. In this article, there is a detailed explanation of the importance of title insurance service and its need for selling your home.
What is Title Insurance?
- An owner to the title has the right to occupy, lease, access, or sell the specific property. If there is any transaction for buying or selling the property, the ownership should be transferred. So, a title is described as a legal right to the property that is approved by the mandatory recorded document. Hence, a title is the most important aspect for authorizing the ownership rights of the property.
- Whenever there is a transfer of ownership in a property, there will also be changes in the title. All through these transfers, there are several probabilities of dangers leading to flaws in the title. These flaws may lead to monetary losses, additional costs, block the ownership rights, limit the property usage rights to the owners. A seller also might be in soup if there are any hidden defects during his ownership tenures.
- These flaws or defects could be arising from documental errors, pending liens, etc, and can be only safeguarded by having reliable title insurance coverage. It is unique from other kinds of insurance that safeguard for the losses that may be occurring due to any future events. Title insurance will reimburse for any losses in the future that arise before the transfer of title ownership.
Types of Title Insurance:
Lender’s Insurance:
A lender’s insurance will protect the interest of the person lending finances for the deal. Generally, lenders will ask the buyers to have a lenders insurance policy to protect the investment against any title defects.
Owner’s Insurance:
This will protect the owner who has the title ownership rights to that particular property. Even though it is not compulsory, it is advised to have this insurance to protect from any hidden title defects that may hit all of a sudden. Being a responsible individual, it is important to have an owners’ insurance policy to save yourselves from surprise risk factors.
How will it Benefit the Seller?
Offering Title Insurance:
As mentioned above, title insurance is important to safeguard the interests of title owners of that property. While it is mandatory for safeguarding the lender’s interests it is also important for helping both sellers and buyers from any surprising defects in the future. Generally, some title defects stay hidden and arise all of a sudden which raises the importance of title insurance companies. Just a one-time fee during the closing process will do you loads of goods in the future.
Agreements of the Lawyers:
An important service offered by a title insurance company is aiding sellers with several agreements of the lawyers which are part of the selling process. Reliable title insurance companies will consist will provide this as a part of their seller’s service where they will access the agreements to guarantee their legal.
Title Searches:
Another highly precious sellers service of a title insurance company is performing the title search of a given property. This title search is performed on the public records related to the ownership of that particular property. This title search is highly important since it will scan the public records for that specific property to find if it has any pending liens, visible flaws, etc to give clearance for selling. It is an assurance before you sell the property to avoid any surprises in the later stages. A reliable title insurance company will have experts who will perform a detailed title search that will disclose any flaws and resolve them before the closing process.
Paperwork and Notary:
Closing the paperwork and related tasks will be a smooth process with the association of a reliable title insurance company. They will have the expertise of working closely with the required agencies related to the local authorities. This will ensure that you will be clear concerning the completion of all closing documents.
You will also have the advantage of getting adequate notary services to the seller which calls for having notarized documents during the selling process. Sellers’ service from a trusted title insurance company will save you loads on the time and annoyance of looking out for a precise notary service.
Lien Negotiations:
There are possibilities of any pending liens on a property, and being a seller you must make sure that all of them are cleared. This complete process can be highly tedious and lead to hassles during the closing process. Hence, a title company can aid in negotiating the liens to keep you tension-free in closing the deal.
Handling all the Activities Related to the Closing Process:
A trusted title insurance firm will aid in completing the closing process smoothly by making sure that all the people included in the deal are having the required documents. This will guarantee your investment with the documents being handled at all stages of the process. You can easily complete the process and stay peacefully for a longer time in the future.
Final Thoughts:
Without having reliable title insurance can hurt you severely in the selling process or the future. After spending hefty money on several other aspects, some people tend to neglect to get title insurance. If you are looking to sell your property, it is important to have title insurance from a reliable title insurance company. Along with monitoring the entire process, they will save you from loss of investment and legal issues. A selling service from an expert title insurance company like Title Guarantee can safeguard your interests even until infinite times.