Title insurance is often misunderstood by prospective homeowners. They might know they should obtain title insurance, but they might not know why. As a Southwest Florida Real Estate Agent, it is your job to explain the importance and significance of title insurance to your clients. You’ll need to tell your clients that title insurance is necessary to ensure their legal claims to the property are protected. In order to accurately advise your clients regarding title insurance, there are four things you should know.
You might have explained to your client that title insurance will protect them from any claims against the property before they acquired that property. But what exactly does this mean? Let’s say, for example, that your client buys a home only to find out a contractor has filed a lien against the property because the previous owner didn’t pay up. If your client has title insurance, they are not responsible for paying the lien. However, that scenario is quite different if they don’t have the title insurance, meaning they are responsible for any claims against the property, no matter the circumstances.
When explaining the benefits of title insurance, Southwest Florida Real Estate Agents would do well to mention the enduring value of title insurance. Prospective homeowners need to know that for a one-time low fee at the time of the purchase, they and their heirs are protected financially from unknown defects that could cause financial hardship otherwise. The fee paid at the time of closing is based on the value of the home.
Southwest Florida Real Estate Agents need to be aware of local and state laws regarding title insurance. Each state government regulates the rules surrounding title insurance. In addition to state regulations, the Consumer Financial Protection Bureau (CFPB) makes rules in relation to closing and settlement practices which can have a direct impact on title insurance. Title insurance practices vary from state to state and will also depend upon local real estate customs. The party who is repsonsible for paying the title insurance varies between states and even within states so you must know the laws for your area.
It is the job of every professional who is helping a prospective homeowner to protect the client. There’s a lot at stake because buying a home is likely the biggest investment that person is going to make. If the proper steps are not taken, such as obtaining title insurance, it could lead to a legal financial hassle for a new homeowner. Southwest Florida Real Estate Agents need to use resources available to ensure their clients get the best service possible. They can do this by working with others involved in the process, such as the professionals at Heights Title, to protect homebuyers and give them peace of mind when buying their new home.
Team up with the professionals at Heights Title so you can better serve your clients and help them protect the biggest investment they will ever make.