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Why Do You Need Title Insurance?

Title Insurance.

It’s a term we hear and see frequently - we see reference to it in the Sunday real estate section, in advertisements and in conversations with real estate brokers. If you’ve purchased a home before, you’re probably familiar with the benefits and procedures of title insurance. But if this is your first home, you may wonder, “Why do I need another insurance policy? It’s just one more bill to pay.”

The answer is simple: The purchase of a home is most likely one of the most expensive and important purchases you will ever make. You, and your mortgage lender, want to make sure that the property is indeed yours - lock, stock and barrel - and that no individual or government entity has any right, lien, claim to your property.

Title insurance companies are in business to make sure your rights and interests to the property are clear, that transfer of title takes place efficiently and correctly and that your interests as a homebuyer are protected to the maximum degree.

Title insurance companies provide services to buyers, sellers, real estate developers, builders, mortgage lenders and others who have an interest in a real estate transfer. Title companies routinely issue two types of policies - “owner’s”, which cover you, the homebuyer; and “lender’s”, which covers the bank, savings and loan or other lending institution over the life of the loan. Both are issued at the time of purchase for a modest, one-time premium.

Before issuing a policy, however, the title company performs an extensive search of relevant public records to determine if anyone other than you has an interest in the property. The search may be performed by title company personnel using either public records or more likely, information gathered, reorganized and indexed in the company’s title plant.

With such a thorough examination of records, any title problems usually can be found and cleared up prior to your purchase of the property. Once a title policy is issued, if for some reason any claim which is covered under your title policy is ever filed against your property, the title company will pay the legal fee involved in defense of your rights, as well as any covered loss arising from a valid claim. That protection, which is in effect as long as you or your heirs own the property, is yours for a one-time premium paid at the time of purchase.

The fact that title companies work to eliminate risks before they develop makes the title insurance decidedly different from other types of insurance you may have purchased. Most forms of insurance assume risks by providing financial protection through a pooling of risks for losses arising from an unforeseen event, say a fire, theft or accident. The purpose of title insurance, on the other hand, is to eliminate risks and prevent losses caused by defects in title that happened in the past. Risks are examined and mitigated before property changes hands.

This risk elimination has benefits to both you, the homebuyer, and the title company: it minimizes the chances adverse claims might be raised, and by so doing reduces the number of claims that have to be defended or satisfied. This keeps costs down for the title company and your title premiums low.

Buying a home is a big step emotionally and financially. With title insurance you are assured that any valid claim against your property will be borne by the title company, and that the odds of a claim being filed are slim indeed.

Isn’t sleeping well at night, knowing your home is yours, reason enough for title insurance?

Article by CLTA

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HI My name is Steve Woodhatch from Sydney Australia.I have bought and sold many properties right across Australia. I am writing of my experience with Dan Reedy from MORE Property. I bought 3 properties from Dan Reedy,and had never bought in USA or knew much about Kansas City Mo,till I heard Dan Reedys radio show. After listening and thought this guy knows what he is talking about I dropped him an email,and made the long trip From Australia to Kansas City mo. I also went to about 4 other states and spoke and looked at many properties,but I found Dan to be the most ethical and Knowledgable as regards the many different markets in Kansas city from Properties in the hood right up to the most expensive suburbs.I will be buying more from Dan. And his wife Nancy is very proficient in accounts and the rental side of the buisness which is one of the most important parts of owning Real estate. Kind Regards Steve Woodhatch Sydney,Australia Steve Woodhatch
It is with much pleasure that I write this letter of recommendation regarding Dan Reedy and his agency, MORE KC. As an overseas investor, finding excellent management was crucial for me, and I feel very fortunate to have Dan and his team looking after my properties. He and his wife Nancy offer a complete real estate service, ranging from rehabbing, to carrying our repairs, finding tenants, and managing the tenancies. Dan is an excellent communicator, which is of paramount importance to the overseas investor. Whenever I have cause to email him, he invariably replies on the same day, and more often within the hour. If urgent repairs need to be carried out, Dan always manages to sort things out immediately, and I always receive his friendly email saying ‘all done’ once things are back in order. Nancy runs the rental side of things like clockwork, with rental statements always delivered on time. The Property Ware software used by MORE KC is brilliant, and because Nancy and her team are vigilant about keeping it up-to-date, owners can log in at any time to check on the current state of bills, repairs, payments, leases etc. I have no hesitation in recommending MORE KC to any property investor, and particularly to out-of-state and overseas investors, who can feel confident that their properties are in good hands. Yours sincerely, Diana Masters Diane Masters
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