Real estate buyers should consider title insurance when buying new property. As a requirement of your mortgage, you might be required to have title insurance - what's called a lender's policy.
Regardless of your situation, you have options when it comes to purchasing title insurance. Making the right decision is crucial because the right title company can keep your title in good standing, and prevent future problems.
There are plenty of title companies that can provide a variety of these essential services. A thorough and experienced real estate lawyer and title company will first provide a deep search of public records for any potential issues with the title. After that, they’ll offer insurance that will cover certain types of issues that could potentially arise in the future.
Here’s what you should ask your title company:
- How much do you charge?
- How is the policy paid for?
- How does your coverage differ from other firms?
- What is the experience of your attorney?
- When searching for a title, how long does it take you?
- When it comes to title searches, what has been your most challenging experience?
How much do you charge?
It is natural that you would not want to pay more than you need to as a consumer. Nonetheless, there is always a balance between cost and quality. Ensure the scale does not tip too far either way. Tennessee is one of the states that regulates how much title companies can charge for title insurance.
These fees will be determined by the insurance company. Generally, a lender’s policy will relate to the amount of the loan, and an owner’s policy will relate to the total purchase price of the property.
How is the policy paid for?
Oftentimes, buyers of real estate assume the title insurance policy will be covered by them, but that is not always the case. Local customs pertaining to this practice will be familiar to the title insurance company. The buyer in some areas typically purchases their own policy, while in others the seller pays for the policy.
How does your coverage differ from other firms?
Policy provisions protect against title issues discovered after closing. In the event that you end up selling the property, you may have to perform another title search. Hence, previously unknown issues could be found with the title.
If these situations arise, your policy should cover you. Some providers do not cover all situations, however. You can compare coverage with other providers by asking the title company what they provide.
What is the experience of your attorney?
A law school graduate who has the determination and intelligence to succeed is an admirable individual. In complicated legal cases, experience matters.
An attorney with very little experience won't have the breadth of knowledge that an attorney with more experience would have. Title insurance companies can provide you with information about their representation's experience. You should make sure the title insurance company offers strong legal representation.
When searching for a title, how long does it take you?
In some cases, closings can happen quickly. Others need time before signing papers after accepting an offer.
It can take a long time to conduct title searches. This search can take anywhere from a few hours to several days, depending on the size of the property and how many years back the title company searches. Ensure that the company you choose can complete the process within the specified window of time.
When it comes to title searches, what has been your most challenging experience?
Title searches for new homes may be more challenging - for example, there won't be as much documentation. Until the title company looks around, however, it won't be possible to know for sure.
Keeping your guard up while hoping the worst doesn't happen is the best course of action. Your title company can tell you about their most challenging issue they had to resolve. By doing so, you can determine whether they are capable of delivering this critical service.
Working with an experienced real estate attorney like Rochford Law & Real Estate Title in Nashville, TN can save you time and money in the long run. It’s best to cover all your bases and get through a real estate transaction with as little problems as possible. However, it’s comforting to know that should a dispute pop up, a real estate litigation attorney can help find a resolution. Contact Rochford Law & Real Estate Title today!