Make Sure Your Clients are Protected
You’re a real estate agent, which means you know just how stressful the home-buying process can be, even with all of your knowledge. Now, picture someone coming in with absolutely no understanding of the process, and how overwhelming it must feel for them.
Paperwork, fees, unexpected additions, you name it, and the home buying process will throw it at you. Title insurance is often one of those “shocks” or unexpected additions, but, luckily for you, there are ways you can help your client by communicating the value of an owner’s policy. Read on for everything you need to know about title insurance so that you can assist with ease.
Title Insurance Breakdown
The first thing you need to understand is what title insurance means and the types. There are two types of title insurance (owner’s and lender’s) but owner’s insurance is optional, so that’s where our focus is.
Owner’s title insurance is a policy that will protect your client (the homeowner) and their right/legal claim to the property.
Why It Matters for Your Client
Scenario time: Let’s say that the seller of the home was getting repairs made to the exterior of the home, but he was unhappy with the work and refused to pay the company responsible. In turn, the company files a lien against the property in an attempt to collect their money.
If your client doesn’t get title insurance, it will be their responsibility to pay the debt in order for the title to be clear for closing. It’s important to communicate that the money spent on instances caused by not obtaining title insurance could be used to pay their mortgage, furnish their new space, or put towards anything important in their lives.
There are many examples similar to this, but just know that an owner’s policy protects from forged signatures, liens, claims on the property, and more. So, one payment is worth it if the alternative is losing the home you’ve been working so hard to purchase.
This material is provided as a courtesy and for educational purposes only. Please consult your title professional for specific information regarding your situation.