For most Americans, our home is the single largest financial investment we ever make. More importantly, it’s where we raise our families, share time with friends and live our lives. While ownership of our home may seem very straightforward, our rights to enjoy our property aren’t always as clear. There are literally dozens of ways in which your title to (and ownership of) the property can be jeopardized. The title insurance industry exists to ensure that title issues don’t affect your home ownership rights.
Title insurance professionals examine or research public records to see if there are any problems or defects that could cause you issues when purchasing or refinancing a home. They may also manage the closing process.
The title professional ensures the title search is completed, writes the title insurance policy and works to reduce your risk of ownership issues that might have existed prior to you owning the home.
Sometimes undiscoverable defects can come up after the title search. Title issues may include forgery, fraud or clerical errors. Owner’s title insurance is the best way to protect yourself from losing your property for these types of issues.
What Does the Closing Process Entail?
-Once a sales contract has been approved or a refinance has been initiated, the Escrow Agent (usually the title company) will begin a title order. Tax information, inspections, surveys, loan payoffs and other legal paperwork is ordered during this stage.
-The legal owner of the property is defined and any outstanding liens or assessments are determined.
-The closing agent/title company will review all of the legal and loan documents to assess charges and prepare the closing statements and a closing date will be set.
-Paperwork is signed by both the buyers and sellers at closing. (Sellers will sign the deed and additional documents. The buyer will sign all the mortgage documents, which at times, can be quite numerous if a mortgage is being utilized). Prior loans are paid off and the real estate agents (or assisting parties) are paid for their services.
-After the closing, the transaction documents are sent to the county recorder’s office and the title insurance policy is sent to the lender and the buyer (borrower).
Every year, the vast majority of homebuyers in America elect to protect the largest investment of their lives and purchase owner’s title insurance. Owner’s title insurance protects your interests after you purchase your home.
Your title professional has your back. They sweat the small stuff so you don’t have to, giving you peace of mind.
About the Author
Trisha K. Murphy, Account Manager
Meridian Title Corporation
tmurphy@meridiantitle.com
(260) 414-1003
meridiantitle.com
