Three Ways Title Insurance Agents Make Real Estate Transactions Easier

Closing a real estate transaction is exciting whether you're a buyer, seller, or broker. Title insurance brokers perform an important, yet often undervalued, role in the closing process, offering assistance and protection to all parties involved. The following are just a handful of the ways specialists optimize real estate transactions.

Preventing Claims and Protecting Property Rights of Homeowners

The title insurance agent's primary responsibility is to ensure that the property is transferred from the homeowner to the homebuyer without any legal responsibilities, liens, or backed payments. Title insurance protects both parties by guaranteeing the original owner's investment is protected and relieving the buyer's concerns. Though the agents and/or attorneys will keep approximately 80% of the title insurance premium, it is a one-time expense that protects a buyer's investment for the duration of the property's ownership. Fees vary by state, but they typically include the first title search, any problems corrected, the construction of the individual policy, and the closing cost.

Transfers That Are Safe and Efficient

Homebuyers want to know that the keys to their new home are free of any outstanding legal responsibilities. Insurance agents can check the chain of ownership and any papers linked with the property using detailed public records systems before the buyer agrees to close. Delinquent taxes from past owners, liens from unpaid child support or contractor costs, or even fraud charges are all huge red flags for potential purchasers.

Cost-cutting through Risk Management

Because title insurance minimizes the risk of homeownership, many mortgage lenders will gladly offer reduced interest rates once the examination is completed and the insurance is acquired. This discount will accumulate over the life of the mortgage, saving the new homeowner money. According to the Consumer Financial Protection Bureau, a.5% interest rate reduction on a $200,000 30-year fixed-rate loan will save the borrower $60 per month, or $3,500 during the first five years.

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