Title Co And Insurance
I hope this is a good place to post this Topic. I have a problem when it comes to title companies, insurance and statements like"title is open at Fidelity Title" for example. I don't understand them. Could someone please explain the process and what happens on a normal house purchase at a title company what they do and why it is needed? Please!!!!!!
Thanks
Jar
When someone purchases a property, a title company insures the title against any defects, liens or encumbrances except those specifically not covered by the title insurance policy. So when the buyer order title insurance, the title company sends someone to the courthouse for the county in which the property is located, and the "searcher" checks the records on the property to determine who the current owner is and what, if any, liens or encumbrances are recorded against the property.
When you're buying any type of real estate, you should get title insurance because that is your only guarantee that the title is good, clear and free from defects.
Is there occasions where I can skip the title insurance? I have been buying and holding rental properties and an occasional rehab flip. The insurance is a good penny and I have never had a title problem to date. I know the simple answer is "always buy the insurance" better safe than sorry. But what percentage of purchases come back to bite you? There has already been a title search isn't that a pretty good indicator in itself?
If I were you, I wouldn't play Russion roulette. There's too much at risk. Get the title insurance.
So when the title is open at a title company the buyer has already purchased insurance for the title and you just take your buyers contract to them. So they can make the title for the new owner. What about escrow accounts? Do they handle all of that also, so if you are the buyer you take your earnest money to them?
Thanks
Jar
Mike:
If you are going to do a rehab flip, then you want to purchase your title policy with a "binder" on it. It will save you a lot of money. Also, you should meet with several different reps from the title companies in your area and work out a deal.
The deal I have with First American Title Company is as follows:
-60% of base rate escrow, no sub escrow
-They will do a binder to binder, meaning
if I purchase a title policy with another
company with a binder, they will honor
it even if it is not purchased thru them.
-Title insurance without formal escrow
-Free prelims
-Free property profiles
-Free comps
-Unlimited "Farm Packages"
-Free skybox at Anaheim Pond
It would really be of your best interest to
contact some title reps in your area and
see what they have to offer you.
Best Riches,
Jeffrey Adam
_________________
"The only place success comes before work
is in the dictionary."[ Edited by JeffreyAdam on Date 03/06/2004 ]
Well I just spoke with First American, they're going to have a title rep contact me. I know I sounded like a total newb, and I told him I was new...so in the end it was all good.
When I meet with the rep I'll try to ask the right questions. The person on the phone didn't seem to know anything about a binder...I assume it has something to do with buying a policy and transferring it over to the next buyer?? He said what they offer is a possible discount within a certain timeframe. I'll try to negotiate everything I can.
I am a little confused as to some of your answers though...what is base rate escrow, no sub escrow?
Quote:
On 2004-03-06 18:48, JeffreyAdam wrote:
Mike:
If you are going to do a rehab flip, then you want to purchase your title policy with a "binder" on it. It will save you a lot of money. Also, you should meet with several different reps from the title companies in your area and work out a deal.
The deal I have with First American Title Company is as follows:
-60% of base rate escrow, no sub escrow
-They will do a binder to binder, meaning
if I purchase a title policy with another
company with a binder, they will honor
it even if it is not purchased thru them.
-Title insurance without formal escrow
-Free prelims
-Free property profiles
-Free comps
-Unlimited "Farm Packages"
-Free skybox at Anaheim Pond
It would really be of your best interest to
contact some title reps in your area and
see what they have to offer you.
Best Riches,
Jeffrey Adam
_________________
"The only place success comes before work
is in the dictionary."
<font size=-1>[ Edited by JeffreyAdam on Date 03/06/2004 ]</font>
Free skybox at the Pond? That's some creative, crafty deal-making!
I would highly recommend ALWAYS buying title insurance. The "loss" or "claims" ratios for title insurance companies vary from area to area, but they ratios that I have seen hover between 10 and 15%. That is a pretty large loss ratio, so I would not want to take the chance that the one time I did not purchase a policy I fell into the 10 to 15% category. Also, the "uninsured" deed may cause you transfer problems in the future when the next title company involved in the next transactions wants to know why there is an uninsured deed on the property - it makes them nervous.
Quote:
On 2004-03-06 18:48, JeffreyAdam wrote:
-Title insurance without formal escrow
-Free prelims
-Free property profiles
****-Free comps****
-Unlimited "Farm Packages"
-Free skybox at Anaheim Pond
<font size=-1>[ Edited by JeffreyAdam on Date 03/06/2004 ]</font>
OK....when it comes to real estate...what are comps??? I've seen that word thrown around a few times on this forum...
Along those same lines....
Can you decline title insurance when refinancing??? After all, you already purchased title insurance on it previously.
If you did refi, decline the title insurance, and then have a claim, could you use the original policy that was written, or is it null and void after a refi???
The title insurance policy that you receive when you purchase the property insures your title to the property. The title insurance policy that is purchased when you refi is for the lender, not you. A lender will always require a lenders policy.