Title Insurance Breakdown
If you’re buying a new property, then you’ve probably heard about how important purchasing Title Insurance is. Without this fundamental safeguard, your investment is left vulnerable to other people’s claims to ownership, as well as a number of other issues such as money owed on the property or disputes over boundaries. So, you know that it is essential to make sure that your home is covered by Title Insurance. But, how do you go about getting it? All the legal processes and documents involved in purchasing a home can get confusing and even overwhelming at times, but help is at hand! In this blog, your local Title Insurance Agency – Colorado Professionals have put together a great six step guide to the Title Insurance process.
Step 1: Request Title Insurance
The first step in the process is to request Title Insurance from a reputable provider, such as Colorado Professionals. Speak to your estate agent or lawyer about putting in a request as soon as the contract is signed as the Title Insurance process must be completed before closing.
Step 2: Records Search and Title Examination
Your chosen Title Insurance provider will then conduct an exhaustive search of all the historical records related to the property that you are purchasing. These include mortgages, wills and liens, and other documents. They will identify any problems with the current deed to the property. Problems could arise for a number of reasons, such as errors in public records, unknown liens, illegal deeds, undiscovered wills or missing heirs or even forgeries. Did you know that as many as 1 in 4 Title Searches in the United States reveals a potentially serious error with the Title that must be rectified before closing? Errors in the Title are more common than you might think. So, don’t delay! Call Colorado Professionals – Title Insurance Agency today at (303) 268-4278 to find out more about their professional service.
Step 3: Binder Issued
The ‘binder’ is the document that your Title Insurance Agent will create. It stipulates the coverage of the Title Insurance and is designed to protect both the buyer and the seller during the transitional phase of the buying process. This document will also detail any ‘clouds’ – issues with the current deed to the property that could potentially affect the sale.
Step 4: Revealing Hidden Issues
‘Clouds’ are issues with the Title to a property that have not been previously revealed. These could include inaccurate surveys, unpaid taxes or other payments, and encumbrances, as well as many other potential issues. Anything left by the previous owners becomes your problem when you purchase the property, so take care of any unseen problems well in advance.
Step 5: Cloud Cleaning
Once the ‘clouds’ are identified, it is important to eradicate them before closing in order to have the peace of mind that comes from full and uncontested ownership of your property. In some circumstances, these clouds can be resolved in as a little as a few hours. However, the process could end up taking weeks or even months if legal action has to be taken. Remember, if you do not purchase Title Insurance, you could be liable for the cost of cloud clearing, which could amount to thousands of dollars!
Step 6: Low One-Off Payment
Unlike other forms of Insurance, your Title Insurance is paid in one premium, so you do not have to worry about making monthly payments. This premium will be included in the closing costs, along with other fees associated with closing, such as legal fees and taxes. The buyer covers the premium and the policy is guaranteed for the lifetime of the buyer’s ownership. Your lender or mortgage provider will receive a copy of the policy, and you will be able to enjoy your new home, free from any stress or worry about future ownership disputes.
What does the Title Agency Do?
The role of the Title Agency in this process is very clear – they will coordinate with your mortgage provider or other lender, conduct the records search and Title examination and produce all the relevant documents. All you need to do is sit back and let your Title Insurance Agency take care of everything.
Title Insurance in Colorado
Don’t leave your investment vulnerable, and don’t waste time on cloud clearing! Request Title Insurance today and make sure that your home is fully protected. Colorado Professionals, Title Insurance Agency are your local Title Insurance agency. They provide a high-quality, professional service at accessible rates. Call today at (303) 268-4278 to find out more about how you could benefit from Title Insurance in Colorado.