Eyes Wide Open: Title Search & Title Insurance
Every home buyer needs to be well informed as they complete their home purchase. Beyond the home inspection, perhaps no other part of your transaction can give you as much peace of mind about what you’re buying as can a title search and title insurance.
When you agree to purchase any property — a piece of land, a newly built home or an existing residence — a title search will be required before closing. This search provides you and your mortgage lender with a guarantee that there are no errors or defects involving the deed to the subject property. They search will show if there are any unresolved liens or mortgages, fraud, property boundary disputes or other conflicts involving the property.
After the title search is done, you will have the option to purchase owner’s title insurance, a one–time expense that will cover you should a problem with title arise at any time during or even after your ownership of the property. Look for a policy that does not have a lot of exclusions so that there are fewer ways the insurer can reject a claim should you have one.
Your mortgage lender will require you to purchase a lender’s title policy to protect its interest in the property.
For those buyers who question whether it is worth buying title insurance, consider that each year, title insurers pay out hundreds of millions of dollars in claims. Approximately 1 out of 4 title searches in real estate transactions uncovers a title problem, though many buyers are not aware of issues because the title company will resolve the problems before issuing a title insurance policy.
Together, the one–time cost of the title search and both of these policies should be approximately 0.5% of the total purchase price. Title costs usually are paid at closing.
Kurfiss Sotheby’s International Realty frequently relies on Delaware River Closing Services, a Bucks County–based title company, to ensure clear title to properties it has placed under agreement.
For more information about title services
Contact Brendan Nolan and he will be happy to assist.
- Brendan Nolan