Many buyers and sellers are aware that title insurance is a necessary part of the deal. However, many times they are unsure of the process or have questions regarding the way that title insurance works. That is why today at The Group Guaranteed Title, we want to take the time to explain the basic steps of obtaining title insurance.
Contact the Best Title Insurance Agency in Fort Collins
In order to begin the process of obtaining title insurance, you need to contact a trusted title insurance company. Not all companies can offer the expertise and professionalism that we at The Group Guaranteed Title offer. Our complete services allow you to always maintain the peace of mind you deserve. Contact us immediately and obtain our professional services today.
Requesting Title Insurance for a Property
First, some basic information on the property in question will need to be obtained. With this brief information, an extensive title search will be carried out. Click here to read more on what a title search is and why it is important. Based on the title search, our highly qualified experts are able to detect if there are any inconsistencies that could cause problems later on. They will scrutinize all records and thoroughly analyze the documents as they make note of any gray areas or doubtful information. Next, they will compile their findings in a document that lets you know of any inconsistencies and how these can affect your purchase or ownership of the property. This document is known as a commitment.
What Is a Commitment and How Does It Help You?
A commitment is an initial report where all the defects and other problems are listed. This list of problems must be fixed by the seller before closing. In some cases the seller may not be able to correct one or some of the problems or he may refuse to do so. This is where you decide whether you want to continue with the deal as is or not, but at least you will be well aware of the conflicts. There are also cases where the title insurance company will refuse to issue the policy. If the problems are highly conflicting and are not fixed beforehand, the title insurance will choose to not offer any sort of coverage. In these cases, your best bet may be to opt out of the deal because if the title insurance is not willing to cover you, then there are substantial problems that you probably don´t want to deal with.
Dealing With Title Defects
In the majority of cases, the owner will agree to take care of the problem. Many times this just requires a clear up in the documents or a debt may need to be liquidated. Other times it is an error in the land survey or other record problems that need to be taken care of. Liens are among the commonly presented problems. Learn more about liens and how to deal with them in our previous post.
Title Insurance Will Not Cover Issues You Are Well Aware Of
Once the inconsistencies or title defects are dealt with the title company will most likely agree to issue the policy. Sometimes the buyer and seller agree to go on with the sale even when a certain title defect could not be corrected. Since both parties were aware of the issue and decided to continue, the title insurance company may be able to advise them on what to do or they will clearly express that the title insurance policy will not cover anything regarding that issue.
Payment and Issuing of the Title Insurance Policy
Before the title process is completed the policy must be paid for upfront. Title insurance requires a one-time payment that covers the owner for as long as he/she holds an interest in the property. There are no monthly payments or other annual costs for the title insurance. The policy is usually issued for the amount that is invested in the property. This means that for a lender´s title insurance the policy covers the amount of the mortgage or the amount that the lending company placed on the property. For the owner´s title insurance, the owner is usually cover for the amount that the owner put in.
Easier Real Estate Transactions With the Best Title Insurance Agency in Fort Collins
Whether you have purchased a property before or this is your first time, obtaining title insurance should be a pain-free process. At The Group Guaranteed Title, we guide you through the process and make it as simple and easy as possible. Let us take care of all the work and help you protect your investment. Call us today at (970) 613-4364.