You’ve weighed the costs and benefits of title insurance and have decided to purchase the insurance for your home. Many homeowners decide to invest in this one-time fee to protect their homeownership, but you must follow a few steps to make sure your insurance purchase goes smoothly. Once you’ve decided to purchase title insurance, follow these steps to complete the process, and guarantee protection for your home.
The Search of Records
Before purchasing title insurance, a title examiner will create a preliminary title report. This report is made after the examiner searched records for name, tax, and property information. These searches include county searches, judgment searches against involved parties, and tax searches.
Next, the title examiner will conduct an in-depth examination of all documents on record. The examination helps to evaluate all of the property information and how that information may affect the title of the property.
Issuance of the Title Binder
The title insurance underwriter will issue the title binder. This is a commitment to issue a title policy that protects both the buyer and seller during the transitional phase of the home sale. The binder will outline the coverage the title insurance company will provide, the terms and conditions, any policy limitations, and any “clouds” that could affect the sale.
Exposing Hidden Clouds
Before purchasing title insurance, you must look out for things like “clouds.” A cloud on a title is any irregularity or defect in the ownership of the property. Some of these irregularities can include incorrect surveys, unpaid taxes, judgments, foreclosure attempts, and more.
Clean the Clouds
Once the clouds are exposed, the title company can address the defects with the buyer and the seller.
Payment at Closing
At last, the clouds are removed, and the decision has been made to move forward with the home purchase. At this point, a title insurance policy can be issued. When purchasing title insurance, only a one-time premium is required. The buyer pays this fee at the time of closing, and the policy remains in effect for as long as they own the property.
A Title Company You Can Trust: Colony Title
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, and LinkedIn.