Why You Need Title Insurance

“Why You Need Title Insurance”            

Insurance

Insurance (Photo credit: Christopher S. Penn)

My friend just bought a multi family from me.  After we closed and he toured his new investment property, there were things he noticed for the first time because, as he said, “I was more concerned with the things I had to do before I could close, like having all the money I had to bring to closing, and buying my homeowner’s insurance.”  Title insurance is another one of those things you need to get before you close and you hope you never have to think about it again.

While working with Quicken on a mortgage application, I received several calls from my contact until I provided him with the name of the title insurance company our mutual clients would be using.  Of course my clients had no idea this was going on, because their attorney, like so many attorneys, acquired title insurance for the buyer and then just added it to the HUD-1 Settlement statement.

So what is title insurance besides another expense at the closing table and why is it so important to the lender?  Title insurance protects the buyer and their mortgage holder fr0m losses due to clouds on the title.  Sounds romantic, clouds on the title, until someone steps forward to contest your fee simple right to enjoy your property.  

Title insurance companies make sure that no one else can claim ownership of your home due to unpaid property taxes, including water liens, unpaid mortgages, mechanics liens, right of way easements, or child support liens, just to name a few.  In upstate NY, homeowners had to insure against Indian Tribes claiming rights to their land. 

What makes title insurance so different?  Title insurers only charge a one time fee which pays for a title search professional to identify and repair problems that occured in the past.  Title insurance has lower loss rates because it’s preventive, and your title insurance converage is in effect for as long as you or your heirs own the property.

One of my clients filed a claim against her title company when an unrepaired defect prevented her from reselling the property.  Another client found out her lawyer never paid for her title insurance until an issue arose and she had no recourse.  

You have the right to chose your own title professional and don’t need to leave it up to your attorney or mortgage provider.

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About Ruth Zeiss

As a Realtor servicing the state of Connecticut, I believe everyone deserves a boutique level of client care, regardless of the size of the moat around their castle. I believe that homeownership is the gateway to prosperity. Why build someone else’s equity when you can build your own wealth? If you’re a buyer, my goal is to find you a home you can not only afford to buy, but a home you can afford to keep. Are you selling your house? I will work with you to market and sell your property. Your ideas are always welcome because no on knows their house as well as you do. If you are a renter, you know how competitive the rental market is. I will help you find the best quality rental in your budget Is your credit scratched and dented? I will help you market yourself to the landlord so you can overcome those blemishes on your credit report & get the rental. Buying, selling, or leasing, I will protect your interests every step of the way from the initial negotiations, to inspections, appraisals, and finally the closing table. I care for my clients as if you are my own children. It’s not just my job, it’s the way I’ve always done business. Ruth Zeiss CT Real Estate License RES.0789147
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