Choosing a Title Company: What Questions to Ask
When choosing a title company, it’s vital to find professionals you can talk to. With all the regulations surrounding title insurance policies, you want to make sure that you can ask questions and trust the answers you receive.
But do you know what questions you should be asking your chosen title company? In this post, we’ll give you some pointers on what to ask, why these issues are important, and what you can expect to hear from your title agent.
What Kind of Coverage Do I Need?
“Standard” title insurance policies are just that – standard. The average policy may be perfectly fine in most instances, but many of our clients require a more personalized approach to title insurance.
The kind of property being purchased can often affect your title insurance needs. For example, residential and commercial properties have different insurance requirements, as do vacant lots or undeveloped plots of land. Similarly, properties that are sub-divisions of a bigger plot, apartments, and condos require different types of coverage to your typical single family home property.
Always ask your title agent if you need an enhanced owner’s policy, and what additional coverage that would include for your specific property.
What is the Cost?
Expenses are a big concern for our clients. After the property contract is signed, there are a number of other fees, taxes, and commission costs that must be paid. Of course, your title insurance costs are going to vary depending on your policy needs, so we cannot give you a specific estimate here.
Fortunately, TRID regulations ensure that buyers receive a combination Good Faith Estimate and HUD-1 Settlement Statement before closing. These forms are consolidated into a Closing Disclosure (CD), which itemizes all the costs involved, and allows the buyer to budget accordingly for the transaction.
Ask your title agent or real estate lawyer to walk you through the CD, ensuring that you understand all the different costs involved.
Who Pays For What?
The contract determines whether the buyer or seller pays for certain costs – for example, the lender’s policy, or the premium – although in some cases buyers and sellers can negotiate these costs. Talk to your title insurance professional to find out what local regulation dictates in your area.
What Does Title Insurance Cover?
Your title is considered a bundle of rights; title insurance protects your rights to own and use your property. Other kinds of insurance – like car or homeowner’s insurance – cover the physical property or objects themselves. Title insurance, however, protects you from claims against your property and other title defects.
Who Can I Trust to Help Me?
At Florida Home Title Company, our legal expertise means that we have the knowledge and experience to answer difficult questions and clarify confusing terms and issue title insurance that protects you. Whether you are a realtor looking for the best title company for your clients, or a homebuyer or property developer in need of advice, we have in-depth knowledge of real estate law and title insurance.