As a real estate agent, you’re always aware of the sometimes overwhelming pressures your clients experience when purchasing a home. It is very common for a client to experience frustration and confusion associated with the heaps of paperwork that must be signed. Many buyers are also unaware of all of the fees.
Homebuyers often overlook and misunderstand owner’s title insurance when closing on their transaction. Owner’s title insurance provides great value to homebuyers. As a key advisor to your clients, you must be able to address the values of owner’s title insurance as well as the dangers they may accrue without it.
What Is Title Insurance?
Owner’s title insurance is what protects a homebuyers property interest. Similar to how lenders require a lender’s title insurance policy, homebuyers obtain title insurance to protect their legal claims to a property.
How Owner’s Title Insurance Protects Your Client
As an example, there may be a case where a client purchases a home from a builder, but the builder failed to provide payment to the roof contractor. Still expecting a payment, the roof contractor files a lien against the property. With the absence of owner’s title insurance, the client is responsible for the payment of the roof out of pocket. This is just one of many unforeseen possibilities a homebuyer may experience without owner’s title insurance. Owner’s title insurance ensures your client’s protection from certain legal or financial responsibilities.
Fortunately, owner’s title insurance protects homebuyers financially. With the one-time fee when closing, homebuyers can be at ease knowing that their home is protected against any unknown defects that may cause a financial loss.
State Regulations And CFPB
The costs for title insurance are regulated by the Bureau of Insurance in Virginia. Closing and settlement practices are regulated by the Consumer Financial Protection Bureau (CFPB) which can impact title insurance. Due to the differences in state laws and local real estate customs, you should keep in mind that title insurance industry practices and premiums may vary. The paying party for owner’s title insurance also varies from state to state, as well as regions within a state.
Resources For Realtors
Real estate agents, land title insurance professionals and other stakeholders involved in real estate transactions can collectively protect homebuyers as well as provide them the peace of mind they deserve while going through the process of home closing.
Agents are encouraged to direct questions to Mathis Title.