A little info about title insurance will help you, as a real estate broker, to keep the process smooth and flowing for your clients.
We have a secret professional source who gave us a small inside scoop of title insurance knowledge to pass along to you. Definitely note point 2, a little known fact about a buyer being able to upgrade a Standard Title Policy to an Owners Title Policy (at the buyers cost). Its time for a quick refresher, a little-known fact and a few end-of-year tips right now.
1. Title 101
Title insurance provides homebuyers and lenders with vital protection against losses from certain title issues including forgery, fraud, and liens problems that might limit a homeowners use and enjoyment of their property.
For most Americans, buying a home is the single largest financial investment they will ever make. And while property ownership may seem very straightforward, a homebuyer’s rights to enjoy their property aren’t always as clear.
There are dozens of ways in which the title to and ownership of a property can be jeopardized.
Heres where title insurance comes in
The title insurance process helps reduce the likelihood that title issues will arise, and the policies subsequently issued help protect against loss when a buyer’s ownership rights are challenged.
2. Did you know?
A lot of brokers don’t realize that if a seller is only offering to pay for the Standard Title Policy, then the buyer can call the title company and ask to upgrade their policy to the Owners Title Policy at the buyers cost.
This is particularly beneficial to the buyer in the case where a builder/estate/REO is only offering a Bargain and Sale Deed. A lesser deed combined with a lesser title policy = WAY less protection for your buyer!
Inform your clients and call your title company to learn more!
3. End of the year tips re: title insurance
(this is more escrow related, but we hope it helps)
Here are a few great touch points for you to reach out to your clients on:
- The end of the year is nearing and such a great time to send out all of your 2016 clients final HUD statements along with a handwritten note. People often misplace these and need them for tax time!
- After your transaction closes, set your calendar to reach out to them a month later to make sure they received their final title policy in the mail and remind them to store it in a safe place!
- 4th quarter is a great time to call your favorite title company to set up a meet for coffee and get a refresher on resources and hot topics early on in the New Year!
More to come from the Learning Lab, including our Lender Think Tank clock hour class. A brand new class, featuring 3 speakers from 3 different organizations. Get your questions answered by more than one pro in the business.
You are heartily invited!