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3 Things That Can Go Wrong Without Title Insurance

Wed, 05 Jul 2023 12:12:51 GMT

Buying or selling property usually requires a title service. According to IBISWorld, between 2017 and 2022, the U.S. title insurance industry grew an average of 6.6% each year. Homeowners that opt to use a title service are glad to avoid these three common problems that can happen without title insurance.

1. Illegal Deeds

If there's a prior deed associated with your property that turns out to be false, the entire chain of ownership can be called into question. If someone who was married sold their home without the consent of their spouse, the next deed would be considered illegal. The same is true for other types of illegal deeds. No one wants to buy a home that has questionable ownership patterns and have their right to the property questioned. A thorough title search can help you avoid this problem and have the information you need to make an informed decision about moving forward.

2. Liens You Didn't Know Existed

If a prior owner of your property had a lien filed against the home, you could be in for an unpleasant surprise. If they wanted to, banks and other lending institutions could seek payment for liens attached to your property, even if they aren't yours. You could find yourself with an expensive legal battle on your hands if you were to neglect using title services on the closing of your property. Make sure that the property you want to buy is clear of any and all liens.

3. Clerical or Filing Errors

A lot of headaches in the world can be caused by simple slip-ups that don't seem very important. If your property is misfiled or there's been a clerical error on any form associated with your property, you could have a problem on your hands. These errors will have to be corrected, and the burden of that task typically falls to the homeowner. It's better to find these errors at the beginning of the process when you're able to decide if you still want to move forward with the transaction. Avoiding clerical errors is one benefit of working with a title company.

We're the local title service to call for your next closing. Our team will help you with all of your title search and insurance needs. Give us a call today at E & E Settlement Services to get started. We look forward to working with you!

3 Things Title Companies Wish You Knew

Tue, 25 Apr 2023 12:36:52 GMT

Title companies play an essential role in facilitating the completion of property sales. Many buyers and sellers don't know enough about the services these companies provide. In this article, we'll shed some light on the work title companies do. We'll focus specifically on highlighting important matters that you should know as you conduct business with them.

1. Title Companies Protect Both the Buyers and Sellers

The main task that title companies perform involves researching property titles. They look at the property's chain of title, create an abstract of the title, review data from previous property surveys, and even manage escrow. Think about how those tasks help both buyers and sellers.

From a buyer's standpoint, the work done by the title company can help them gather all the information they need before deciding on the property. If the research performed by the title company doesn't turn up anything unusual, they can feel good about moving forward with the purchase. On the other hand, sellers can ask for a higher offer after the title search reveals no issues. Both sides can benefit from the involvement of the title company, so they should be looped into the transaction.

2. Title Companies Aren't the Ones Forcing You to Purchase Title Insurance

According to Value Penguin, the title insurance industry's business amounted to $19 billion back in 2020. While working with a title company, you will eventually be presented with the opportunity to purchase title insurance. For the most part, there are no laws that require home buyers to also purchase title insurance. However, your lender may require you to purchase that plan if you want to get your loan approved.

By the way, title insurance protects you if someone places a legitimate claim on your home after you've already purchased it. The title search may have missed that claim, but the title company will handle that mess if you have insurance. Also, title insurance is something you'll only have to pay for once. That's just another thing to keep in mind while you're evaluating its importance.

3. The Buyer Doesn't Always Have to Choose the Title Company

Most of the time, the buyer is the one who chooses the title company. That's mainly because the buyer is also the one paying for their services. A seller could still request to pick a title company they're already familiar with. They are just expected to help pay for the title company's services in that case.

Title companies can help make the home-buying process significantly easier. They can also save you from potential headaches down the line. Contact E & E Settlement Services today if you have any questions!

What to Expect When Working With Title Agencies

Wed, 22 Feb 2023 14:47:38 GMT

If you've never worked with title agencies , you likely have some questions. The industry has grown in popularity due to the benefits working with a title agency provides. According to HousingWire, the title insurance industry generated about $26.2 billion worth of premiums in 2021 compared to $19.2 billion the year before. Here are a few things you should expect when you work with title agencies.

Title Research and Insurance

The best way to understand the value that a title agency will bring to the table is to understand what a title agency does. A title agency researches a property to ensure that the title to the home is free and clear of any encumbrances. For example, a lien placed by a contractor or a suspicious change of hands would be considered an encumbrance.

Once the title company finishes reviewing the title and certifies it as valid, they'll place "title insurance" on the title. Title insurance ensures that if someone steps forward to claim the property after the title of the property has been conveyed to you, legal fees and other costs will be covered on your behalf.

Open Communication

When you work with title agencies, you should expect open communication. That means they'll inform you if the company finds some error with the title. An experienced agency will have the processes to move the title search and resulting insurance through the process quickly.

You can expect the title agent to be at your property closing and have all the documents in order. You likely won't meet the actual title agent until the closing, but you may have several conversations beforehand via phone or email.

A Service Fee

Title agency fees can vary from company to company. You can expect to pay anywhere between $300-$900 in fees. The cost of the property will play a role in the cost of fees, and the property's geographical location will play a role in costs.

Working with a title agency is part of the property-buying process. These agents provide a safety net for your real estate purchase. You can shop around and compare your options when choosing a title agent. Connect with E & E Settlement Services today, and we'll be happy to serve your needs with our extensive experience.

Reasons You May Need Title Service Assistance

Wed, 21 Dec 2022 15:41:25 GMT

Purchasing a home is one of the biggest investments you'll make and requires a tremendous amount of paperwork. Title services help ensure that the property is transferred with all liens, encumbrances, and other obligations cleared without any hassles. It's important to understand why you may need title service assistance to protect yourself from potential disputes and other issues that could come up after closing.

Unresolved Claims

When you purchase property, title services help to ensure that the title is clear of any unresolved claims or liens. Title service companies use public records to identify any potential ownership claims or unpaid taxes associated with the property. This helps protect you against losing your investment should any claims or liens arise after the sale is complete.

Third-Party Interests

If you don't use title service assistance, you could be at risk of losing your investment due to third-party interests in the property. This includes rights of access attached to public roads, utilities, and other infrastructure that may cross the property. Title services provide an extra layer of protection by ensuring that all third-party interests are settled prior to closing.

Inaccurate Information

Title service companies will also check for any inaccuracies in title documents. They will compare information in the documents to public records, checking to make sure that all the details are accurate. This would include boundary lines and legal descriptions. This helps protect you from making a bad investment due to inaccurate information in the title.

Forged Documents

Title companies also help identify any forged documents or signatures. By verifying title documents, title companies can help protect you from potential problems caused by forged paperwork. Additionally, if any forgery is discovered after closing, the title company can take legal action on your behalf.

Market Growth

The Title Insurance industry in the U.S. has been growing rapidly over the past few years. According to IBISWorld, it grew at an average of 6.6% a year between 2017 and 2022. This growth is due to the increasing number of real estate transactions and underscores the importance of title service assistance when handling large financial investments.

Buying a home can be complicated and stressful, but title services can help make it easier. Title companies provide an extra layer of protection by ensuring that all claims and encumbrances clear prior to closing. Contact E & E Settlement Services today for more assistance.