If you’re like most people, title insurance is just another thing on the long list of things involved in real estate transactions. You’re not really sure what the thing is, but you know it’s an important thing, although you’re not so sure why the thing is actually important. Well, here’s the thing…as a top-notch title insurance company, we are here to end this confusion and tell you what title insurance is all about, why it exists, how it works and why it matters which title company you choose. Ready? Here we go:
What in the world is it?
You know how car insurance protects you from costs of possible future accidents? Well title insurance is the flip flop of that – it is protection against any past issues with a property that can possibly affect ownership. For instance, say a previous owner never paid their contractor for drywalling the basement – you sure don’t want to get stuck with that bill now do you? Title insurance protects you from that happening.
Why in the world does it exist?
When properties are bought, sold, or financed, records of these transactions are typically filed with the county and state, along with other events associated with the property such as liens, easements, code violations and other stuff you certainly want to find out sooner rather than later. Title companies will perform a search to unearth such problems with the property that need to be dealt with in order for the transaction to take place. However, things like filing errors, forgeries and frauds, surprise heirs who were never disclosed, etc. can make it difficult to identify every possible issue involved. That’s where title insurance comes in – just in case something pops up later that wasn’t revealed in the search.
How in the world does it work?
Unlike traditional insurances that require monthly payments, title insurance is a one-time payment that varies depending on the price of your home and the state in which it is located. Though you only pay once, the policy offers protection for as long as you own the property.
There are two types of title insurance:
Lender’s policy – protects the lender’s interest in your property until your mortgage loan is paid off. If an issue arises that causes a default on the loan, the Lender is covered up to the amount of the mortgage.
Owner’s policy – protects you against any litigation that challenges the legality of your ownership of the property as well as any financial burdens of past occurrences that rear their ugly heads. For example, you find out after the closing that the Seller had unpaid property taxes and now the tax company is looking to collect. Without title insurance, those back taxes are now on you to pay or you risk losing the home you just bought! Simply put, title insurance protects your investment in the property, allowing you to take ownership without holding you responsible for any past expenses associated with the property. Can we get a great big “Whew!”?
Why in the world should you choose Sun Title?
Now that one’s easy! As an attorney-owned company, we have insider expertise on what to look for and how to solve issues efficiently – and even proactively! We are sticklers for details and pretty much obsessed with making sure your closing experience is so problem-free, you’ll barely even know it happens. You’ll just know someone is handing you the keys to your new place faster than you can say, “Wow, that was easy.”
The fact is, when you get your title insurance through Sun Title, you’re not just buying an insurance policy, you’re buying some big time peace of mind…and that indeed is a very important thing! Call 616-458- 9100 today to cover your assets, if you know what we mean.