Having title insurance can be a life saver whenever you're going through a real estate transaction. If you want to learn the different steps that go into it, read this post by Speedy Title and Escrow Services LLC in Clinton Township.
Guide to Getting Title Insurance
Guide to Getting Title Insurance
After all of the time, money, and effort that goes into purchasing an estate, having it be taken away because of preventable issues can be absolutely devastating. Still, it is a possibility. You never know what kind of issues could be present in a property's records that could put your claim on said property in jeopardy (meaning you would lose the property and your money). For that reason, it is of the utmost importance that you are smart when entering the real estate business. Being careful and seeking guidance is key if you want to have safe and successful closing processes. One of the things you should definitely do to that end is get title insurance of your real estate transactions, as it can protect your investment if there are issues with the property's deed. To learn more about what goes into the title insurance process, continue reading the post below.
How to Get Title Insurance
1. Apply for Title Insurance
No title services company will just give you title insurance. In order for that to happen, you need to express that you're interested in acquiring first. For that reason, you firstly need to apply for title insurance. Nowadays, many mortgage companies list title insurance as a requirement in order to lend you money, so they can keep their investment protected.
2. Start Looking Into the Property's Record
Now that the title services company know what you want title insurance, they will assign an agent who will go over your case. For them to do that, they first need to gather all of the records attached to the property in question. These documents are anything from wills, mortgages, liens, endowments, history of ownership, and more.
Call Speedy Title and Escrow Services, LLC at (586) 739-2233 if you require a professional title search, or if you want to purchase title insurance in Clinton Township for your real estate transactions.
3. Researching the Title Thoroughly
Once the agent has gathered all of the property's documents, it's necessary that they start researching through them. As they do, they need to notice all of the issues, mistakes, or irregularities in them (all of which can cause a problem with the property's ownership). It can go from a missing signature and human errors, to signs of fraud or undisclosed errors.
4. Putting Together a Binder
All of the information that the title services agent finds needs to go in a binder or preliminary report. Said report should detail all of the issues found, as well as document the amount of coverage you'll get, the terms and conditions of the title insurance, the limitations, and the 'clouds' that could hinder the transaction. The binder's purpose also is to protect all of the parties involved as the sale goes through.
5. Discovering the ‘Clouds’ of the Sale
The 'clouds' of the sale, as you can probably imagine, are those issues that could prevent the sale from happening at all. Knowing about them is necessary in the insurance process. Those clouds can include encumbrances, unpaid taxes, inaccurate surveys, foreclosure attempts among others.
6. Clearing Up the 'Clouds'
Next up, it's clearing up the clouds. Since there's a variety of clouds that could be in place, clearing them up will require a variety of processes. For example, if one of the clouds is that there's a signature missing, simply signing the document is enough. However, if there's a more complicated issue, you may need to enter a longer, legal process in order to solve it effectively.
7. Paying a Single Premium
Last but not least, comes paying the insurance. Differently from other insurances, title insurance only has to be paid once for lifetime protection for a property. Plus, it can be paid during the closing process with the other legal fees you may need to take care of. In the end, you will be able to rest assured you will be saving your investment.