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You need title services when selling your home yourself

Selling a home without assistance is a complicated and time-consuming process that many people take on to increase profits. It can be tempting, when trying to be frugal, to bypass many of the professionals that are available to help in the sale of your home. Despite the allure of money saved, title services are something you definitely don’t want to skip. The services provided by title companies not only take much of the stress and complication out of the transaction, having professionals at your side could also save your sale.

Title Insurance

Title insurance gives you, and the buyer, a guarantee that there are no outstanding claims against your property before the sale. The title company searches the title history of the property to find any claims that must be handled before the title can be transferred. Once these obligations are addressed, the buyer can receive the title freely and the seller can walk away knowing all debts on the property have been paid.

Escrow Services

Escrow services are available to protect the money and property interests between the buyer and seller. An escrow account is set up to hold any money that is related to the sale. The title company is responsible for ensuring that the title, and money, is disbursed to the correct parties at the appropriate time. This guarantees the title won’t be released to the buyers until all money has been paid, protecting the sellers’ interests.

Closing Services

You need title services when selling your home yourselfThe close is probably the most exciting part of the process. This is usually the moment when all parties sign the required documents, the sale is finalized, and the keys and money exchange hands. Because this meeting comes at the end of the transaction, it is extremely important that everything run smoothly. All parties are invested at this point of the sale and a significant amount of work has gone into making the transaction happen. The title company will host the close by providing the meeting place for the buyer and seller to work out any remaining details. The title company’s additional closing services include handling the paperwork, distributing money, and executing and recording the deed.

Without the use of the title company, sellers are responsible for ensuring there are no claims on their property, must navigate the financial transaction alone, and are responsible for handling their own close with the buyer. Buyers may be less trusting without a title company involved and there is always the potential that something was missed during the title search, a mistake is made with the purchase funds, or that a mistake is made during the close. Any one of these things could cause you to lose the sale and put you back at square one. If you’re considering selling your home yourself, or already have your home on the market, and don’t yet have the a title company to assist you, it’s not too late. Find a title company today so you can focus on what’s really important: finding the right buyer and deciding what to do with the next chapter of your life.

first time home buyers

A mortgage is a very heavy responsibility, and on that will stay with you for the next couple decades. It’s important to make sure that as a purchaser all of your bases are covered. Forgetting small details, like neglecting to find title insurance, can throw a wrench in the purchasing process. It’s important to ensure the mortgage loan goes through without a hitch and nothing disrupts the sale. Here’s an explanation as to why a small, inexpensive detail like title insurance is so important when buying a home.

What is title insurance?

According to the Consumer Financial Protection Bureau, title insurance protects lenders from title issues. Every home’s title must be searched thoroughly before a purchase or sale is made. Sometimes, however, details slip through the cracks. In rare cases, property deeds from sellers prove to be falsified, there can be undiscovered liens on the property that affects its sale, or inheritance disputes can put your ownership in question. For these reasons, homeowners are required to have title insurance on their mortgaged property.

How is Title Insurance Used?

first time home buyershttp://heightstitle.com/wp-content/uploads/2017/10/first-time-home-buyers.jpgStandard title insurance policies are designed to protect a bank’s investment, not your investment. If ownership of your property were to come into question, it is the bank’s responsibility to work with you to file an insurance claim that will pay off your mortgage loan and absolve you of responsibility for the mortgage payments. The bank holding your mortgage must make a claim against the insurance policy with your help. The insurance company would pay the bank for the loan amount on the property and you would walk away. There are ways that you can protect yourself from walking away empty-handed, though. Homeowners can protect their own interests with an expanded owner’s title insurance policy.

Why do you need lender’s title insurance?

Title insurance is the only thing protecting banks and homeowners from taking a huge loss in the event of an unforeseen circumstance that would make their home purchase invalid. Insurance companies and banks require a thorough title search to be performed before a mortgage loan contract can be signed. When the title search is complete, all parties are generally satisfied that the sale of the property is legally permissible. That isn’t always the case, though. If ownership of the property is challenged by a person with a legitimate legal claim, you will probably lose your home. Without title insurance, you would also lose all of your equity. You would walk away essentially penniless. If you buy title insurance, your insurance company will make it right with the lender.

If title insurance is designed to help banks, why don’t banks pay for their own insurance?

Lender’s title insurance is your legal responsibility. You cannot secure a mortgage loan without it. Lenders simply will not allow you to keep a mortgage with their companies without maintaining a policy throughout the life of your loan. It’s true that standard policies only protect lending institutions from title claims. You can, however, purchase your own owner’s title¬†insurance policy. Owner’s policies allow homeowners to walk away from a title claim with money in their pockets.

If purchasing a home is on the horizon, look into the price of securing a policy now. First time homebuyers are encouraged to contact us today for a quote on lender’s and owner’s title insurance.