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Real estate can be challenging, and this goes not only for those who have little to no experience with it but also for those who are familiar with the procedure. Therefore, whether you're a repeat home buyer, have experimented with the market but never made a commitment, or were never familiar with real estate at all, creating a solid plan before a closing can help reduce stress when the time comes. 

Even seasoned professionals may find closing difficult as they negotiate for rates on house insurance all the while taking the home you desire and your needs into consideration. Although it can be tempting to put your emotions aside to come across as a professional and skillful negotiator, many seasoned real estate professionals advise going with your instincts and asking as many questions as necessary about the closing process, regardless of your level of experience.

Getting to know the basics of closing a house is good, but continuously learning about it as much as you can is even better.

In this two-part post, we'll help understand what these are all about.

What You Need To Know About Closing

What Does Closing On A Home Mean?

Closing happens when the buyer obtains the title to the property from the seller. It also means the end of the mortgage loan procedure. Similar to how you "open" negotiations with a seller by making an offer on their home, closing is the final stage of the buying process that concludes when the sellers accept your purchase offer. As you proceed with the transaction's settlement, you will examine, approve, and date the relevant documentation.

Where Does Closing Happen?

Most of the time, the lender is the one who decides where the closing will take place. The closing procedure usually happens at the subject property, although it's more typical to go over the required paperwork in an escrow agency or a title company.

However, because of the COVID-19 pandemic, full closing virtually has become possible.

Which Parties Are Present During Closing?

The state and sometimes even the county where you are buying a home will determine who will be present at your closing. In case relevant parties are not present in one place because of the pandemic (or other similar scenarios), a virtual meeting should take place.

Nonetheless, there are certain participants you can anticipate being involved in the process, regardless of the precise location, including:

closing on a home documents

What Closing Documents Will Be Evaluated?

As mentioned, closing on a home is a thorough procedure requiring tons of paperwork. Every stage of the procedure and interaction with the people involved in your closing is recorded on forms. 

Here's a brief explanation of what these documents are:

Promissory Note

This agreement is your promise to your lender to reimburse them for the amount you owe on the mortgage secured by your house.

Deed Of Trust / Mortgage

This serves as evidence provided by your lender of a lien placed on the assets you provided as loan security or collateral. In essence, this paperwork protects your loan and gives your lender instructions on how to move forward in case you are not able to pay the loan.

Closing Disclosure

A closing disclosure, officially known as Form HUD-1 and sometimes referred to as a settlement statement, is an official list of itemized costs along with other pertinent mortgage-related information. This should contain your mortgage payment schedule, the other terms of your loan, and/or any charges required to pay. 

You must receive an itemized closing disclosure at least three working days before the closing date as required by law. Make sure you submit a request with enough time for the lender to react by consulting with your agent or representative.

Depending on standards maintained by your lender or applicable legislation in your state, you can come across additional paperwork during closing. These may consist of:

Initial Escrow Statement

To protect your closing transaction against fraud, many jurisdictions mandate that you form an escrow account or an account overseen by an impartial third party. If so, the amount that your lender will deduct from your escrow account during the first year of your mortgage repayment plan to pay for taxes, insurance, and other costs is specified in the escrow statement.

Estimate Of Loan

This projected, detailed list of all the charges associated with your closing—also known as a good faith estimate—should be formalized in your closing disclosure. Ensuring this document is accurately documented in the final closing disclosure and that there are no significant differences between the two is very important.

Certificate Of Occupancy

This particular paper permits you to live in a newly built home. To find out if you need to receive this paperwork, you should speak with your agent, lawyer, or representative.

In the next part, we'll dive deeper into house closing, so be sure to click this link.

Selling or buying a home is one of the biggest financial decisions for most people. From the moment you start deciding on whether to buy or sell a new property up to the last process, there are many crucial (and often legal) considerations to make.

That might include choosing between a title company and a real estate attorney. While both of them have their own pros and cons, it all goes down to your specific needs and current situation.

To help you understand when you might choose one over the other, here are some comparisons:

Title Company

Title Search and Insurance

Title companies specialize in conducting title searches to ensure that the property's title is clear of any liens or encumbrances. They also offer title insurance, which provides financial protection in case any title issues arise after the transaction.

Cost-Effective

Title companies are often more cost-effective than hiring a real estate attorney because their primary service is focused on title search and insurance.

Efficiency

Title companies usually have streamlined processes for handling real estate transactions, making the closing process quicker and more efficient.

Standardized Services

Title companies often follow standardized procedures for closing real estate transactions, which can be helpful if you want a straightforward, well-established process.

Real Estate Attorney

Legal Expertise

Real estate attorneys are legal professionals who can provide legal advice, interpret and draft contracts, and protect your interests throughout the transaction. They can address complex legal issues that may arise during the process.

Customization

If your transaction involves unique or complicated circumstances, a real estate attorney can provide customized solutions and legal guidance tailored to your specific situation.

Conflict Resolution

Attorneys are skilled in dispute resolution and can help mediate or resolve conflicts that may arise during the transaction, protecting your rights and interests.

title company agent talking to new homeowners

Additional Legal Needs

If you have other legal matters related to the transaction, such as estate planning, trusts, or zoning issues, a real estate attorney can provide comprehensive legal services.

In summary, the choice between a title company and a real estate attorney depends on the complexity of the transaction and your specific needs. 

For a straightforward residential real estate purchase or sale, a title company may be sufficient and cost-effective. However, if you're dealing with unique or complex circumstances, or if you want the peace of mind of having legal expertise on your side, hiring a real estate attorney may be the better choice. It's often a good idea to consult with a professional to help determine the most appropriate option for your situation.

Our team at IndyLegal has over 50 years of experience and expertise with Indiana’s various real estate and title laws. So if you're looking for a reliable team to help you with real estate transactions, feel free to drop a comment below or message us here

The process of buying a house can be bittersweet -- at one point you're excited to live in your dream home, and then the next thing you know, you're stressing over every transaction. This is also true even when it comes to closing. 

Both buyers and sellers eagerly anticipate the closing date stipulated in their contract. But, when you encounter a closing issue, it becomes frustrating. 

On average, a house closing with a mortgage application takes about 45 days. On the other hand, cash transactions that won't require a lender can close in as fast as one week. Meanwhile, sales that include backing from the Federal Housing Administration involve more paperwork and can take about two months or more. 

However, regardless of what or who is involved, other factors can slow down real estate closing.

Reasons Why A Real Estate Closing Can Delay

Problem With Title

Real estate title is the legal right to own property. Property rights include the privilege to use, possess, transfer, and enjoy the property. Though it is not a physical document, it is a legal concept of ownership. Technically, buying the property means buying all its titles.

On the other hand, a deed is a physical document that serves as evidence that transfers title from one party to another. It outlines the transfer terms, identifies the buyer and seller, and identifies the property being acquired. The deed serves as proof when transferring ownership or becoming the new owner.

Real estate title and deed are related in the same way but have different concepts, and understanding the difference is crucial when buying or selling a property. There can also be factors that can slow down the transaction. Title issues can indeed cause complications and delays in real estate transactions, including:

Ownership Disputes – Ownership disputes can be complex and sensitive issues. It requires legal intervention to resolve. Some ownership disputes include:

Inheritance – This is a usual family issue when a person dies without a clear will. Having room for potential heirs and will claim who has the right to the property.

Conflicting Claims – Multiple parties assert ownership rights to the property, which is done through oral agreement or historical record. 

Unclear Boundaries – When a property is not properly defined or has a conflict report.

Fraudulent Transaction – This includes allegations, such as illegal transfer of title or forged signature. 

Errors In Public Documents – It could be worse if there are mistakes in public records, such as incorrect property descriptions or misspelled names, which can lead to confusion and delays. Before everything, such as putting the property on sale, these errors should be corrected so the process can go smoothly without any problems.

Unpaid Taxes – There could be a problem if the current or previous owners have not paid property taxes. The property may have tax liens placed against the house, which need to be resolved before even putting the house on sale and can proceed.

Liens – It’s a legal claim or right made against the asset, which was held as collateral to satisfy a debt. They have the rights or possession of property until the debt was discharged.

Illegal Deeds – This can invalidate the title and require legal action before proceeding with the sale.  

Chain Of Title Documents Errors – With the title search, you can avoid issues like who holds the title property, how the title is held, or if there are any parties interested in the property. The document will show the vesting deed, mortgage, and mortgage assignment.  

Property Dispute

An instrument survey, which is used to check properties, calculates the location by using land surveying instruments. It reflects the property’s boundaries. A face-to-face survey may bring to light property disputes or intrusion into the borders. If solved quickly, parties must sign an affidavit that reflects the resolution of the dispute before putting the home on sale.

buying real estate

Problems During Final Walk-Through

Problems that can arise during the home inspection or final walk-through can influence the real estate transaction. Therefore, real estate agents encourage buyers to arrange a home inspection before closing the deal. This process is crucial to examine the property’s condition and identify if there are any potential problems or issues. 

Home inspectors will inform you and help you decide on the real estate's condition before proceeding with the purchase. 

Problems usually discovered during a home inspection include:

Good communication is essential in solving these problems and looking for ways to find solutions that will satisfy both parties. 

Home Appraisal Discrepancy

A home appraisal determines the market value of a home. The bank’s appraisal value must match or exceed the home’s value or sale price. If the appraisal value falls short, it may cause a delay. 

When both parties agree, the seller can complete home repairs to increase the property’s value or decrease their price. If the closing date is delayed, buyers who miss their agreed-upon closing date might pay a delayed closing penalty. It could also result in a breach of contract and might result in both parties walking away from the deal. 

Completing the appraisal as soon as possible after contract signing enables the parties to resolve any issues before the closing date and prevents parties from walking away. 

Final Thoughts

Real estate closings can be complicated, stressful, and confusing, especially when there's a lack of competent advice or adequate preparation.

If you are considering buying or selling a house, take time to research and follow tips that will make the closing of your property as smooth as possible. Asking for help from a professional, such as a real estate agent or a title service provider can help close a property quickly and hassle-free.
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Buying a home requires a lot of effort and patience. From preparing financial documents to checking every new listing daily and scheduling it up for house hunting. On top of this, you have your daily routines and responsibilities, like going to work or taking care of the kids. 

The house-hunting process can be very exciting, especially for first-time buyers who specifically save up for down payments and other necessary expenses for the house. However, despite having everything ready, it can be overwhelming to view houses and find your dream home. It’s like entering a bidding war just to find and win your dream home. 

Taking Notes

Remembering all the details from every home you visit can be overwhelming, but you can keep track of everything by taking down notes. Using a pen and notebook or your phone, list down everything you liked and disliked about the house. When it’s time to compare down locations, you can use your notes as a basis.

Using Of Spreadsheet

If you’re familiar with Excel and you think that it’s easier for you to use it, then a handy spreadsheet is the answer. You can input all the details in the spreadsheet and simplify so it will be easier for you when you look and compare for details, such as a three-bedroom, two-bathroom with parking or when the offer for a four-bedroom with two-bathroom is a good price. 

You can easily drop this into a spreadsheet with homes listed in a vertical column on the left and their status and details in a horizontal column across. Depending on your style you can do a lot using the spreadsheet. 

Here are some details you can put on your note or spreadsheet:

Real estate photos are too good to be true and are taken from an angle so they’ll look bigger than their actual size. Having an actual photo means you can have an actual comparison of the size and square footage which is essential when looking for a home. 

home buyer looking for new place with real estate agent

You can also jot down the style of the home you’ve been to. For some, style is also important in choosing a home they want so it is a good thing to note. It may not have an impact on pricing but it will play a big part in choosing the right home for you. 

Putting these notes might help you influence your decision. Depending on the style you want, you might find it more exciting to walk through a modern house than an old house. Your feelings about the house make a difference and could also lead to you finding the right home that will make you happy and at home.

When purchasing or selling real estate, should I hire a title company?

There are a lot of good reasons to buy or sell a house without a realtor's help, but a title company is one vendor you shouldn't do business with without. With a purchase or sale that is for sale by the owner, this is particularly true. Using a title firm guarantees both a smooth closing and the security of your transaction.

What Does The Title Insurance Agency Do?

Making sure the closing is conducted in a proper and organized manner is the responsibility of a title firm. The business will carry out a title search, order the necessary reports and surveys, and confirm that all the documentation is to transfer ownership of the property in question. Title searches and providing title insurance are two of the title company's main contributions. An examination of the title to the property is done through a title search. According to this investigation, the property is eligible for sale and is free and clear of liens. 

title agent holding pen and calculator

Purchasing a home only to discover that it has liens against it or, even worse, that a co-owner didn't approve the sale, is the very last thing you want to do! These kinds of problems will be uncovered via a title search, allowing for their resolution before the closing. The majority of mortgage lenders demand title insurance. The lender is covered by this insurance against unanticipated title flaws, whereas the buyer is covered by a different title insurance policy. This extra security is required since these issues might not be discovered through a title search. You are shielded from title claims by title insurance coverage. The charge is paid once at closing and never again.

Other Services Offered By Title Companies

Paperwork Filing: The title company ensures that copies of the closing documents are given to the buyer, seller, and mortgage lenders as well as submitting the documentation to the relevant government organizations.

Closing Facilitation: On neutral ground, the title company can host and coordinate the closure. The agency does not favor the buyer over the seller or the seller over the buyer because it is an unbiased service provider. The title agency's goal is to ensure that the sale occurs, and it is their responsibility to do so. A title agency accomplishes this by gathering all required paperwork from both parties, ensuring that it is correctly completed, and obtaining signatures. In a for-sale-by-owner transaction, having a second set of eyes to review everything is very beneficial.

Escrow And Notary Services: Title companies can hold the earnest money, act as escrow agents, and make payments. For the completion of documents, they can also offer notary services.

It's crucial to keep in mind that the title company's role is to facilitate a quick and effective closing for all parties. Without the title business, you can encounter needless delays and/or unanticipated problems.

If you have questions about title insurance, IndyLegal Title Services is here to help you!

Call us at 317-214-6023 from Mondays to Fridays so we can assist you!

Working with real estate agents during the closing process is a significant portion of your job if you work for a title business, as you may have already seen. After all, in 2021, 90% of sellers and 87% of purchasers used real estate agents to assist them buy their houses. Therefore, your job will go a little more smoothly if you make it a point to establish relationships with real estate brokers. Additionally, if you establish strong relationships with many agents, those agents may refer more business your way. The question is: how can title companies foster stronger ties with real estate brokers? Check out some suggestions for getting going.

Ensure A Seamless Closing Transaction

The best method for title insurance in Indiana to win over real estate brokers is to make sure that their clients' closings happen well. After all, real estate brokers want to leave a good impression on their clients so that they will get repeat business or recommendations from other buyers and sellers. Make sure the closing day goes smoothly since unhappy buyers and sellers will be critical of the title firm and the realtor. Thankfully, you have a lot of control over how the closing goes as a title agent.

realtor agent holding keys

To prevent closing delays, for instance, you should make sure that the sale contract and all other documentation are accurate before the closing day. Additionally, you should ensure that the client and the agent are well-prepared for closing day, perhaps even by drafting a closing checklist that they can review beforehand. Additionally, maintain a constant contact to make sure you are available to respond to inquiries before the closing. This will go a long way toward impressing real estate agents and likely place your office at the top of the list of title firms they want to work with again if you take these steps to ensure a flawless closing day for every client.

Keep In Touch With Real Estate Agents

If you're a seasoned title agent, you're probably used to keeping in touch with your clients throughout the closing procedure. Make sure you interact with them as well if you want to win over their real estate agents and set yourself apart from the competition. By keeping real estate agents informed throughout the closing process, you'll demonstrate your commitment to working together to give their clients a positive closing experience.

If you want to develop relationships, you should maintain in touch with them after closing day. Please feel free to share any tools you find that would be useful to the real estate professionals you've dealt with. For your next close, even brief notes on special occasions and birthdays can keep you top-of-mind. Before beginning to work with them, be sure to inquire about their preferred channels of contact. The majority of real estate agents should be able to use either approach if they're unsure of how to start as 89% prefer email and 93% prefer text messaging for client communication.

Assist Other Real Estate Experts In Maintain Compliance

Being knowledgeable about real estate laws and regulations is a part of your job as a title agent. If you want to be sure you're handling all the title agency tasks correctly and prevent closing day delays due to your office overlooking crucial items, staying in compliance is essential.

The American Land Title Association (ALTA) and other large associations may have standards that must be followed, therefore title companies like yours must demonstrate that they do. Any new details you learn about ALTA and other organizations associated with the title industry should be shared with real estate agents if you want to benefit your clients during closing and strengthen your connections with them.

To accomplish this, you can send other real estate professionals a simple email whenever you learn of fresh information, or you can even create monthly or quarterly newsletters. When you and local real estate agents are working together as a team to guarantee that all house sales contracts are valid and enforceable, huge problems for buyers and sellers can be avoided. This is made possible when everyone has access to the most recent information in this field.

Focus on Closing Process Efficiency

The closing procedure must be simple for clients to understand title companies, and this involves making it as quick as feasible. After all, just like title agents and real estate agents, your clients are probably quite busy. They also want to move into their new house, so they're quick to finish the property purchase. You should make every effort to hasten the closing on their home.

Keeping in constant contact with the client and real estate agent throughout the closing process will help to ensure that any questions or concerns are handled as soon as they arise. Another strategy to prevent closing delays is to do a complete and correct title search.

Making effective use of technology can also boost closing efficiency. In fact, according to a survey, 81% of respondents still prefer in-person closings even if 70% of respondents want a more automated closing procedure. This means that, even if the closing will take place in person, you should include digital solutions in the process. Going paperless for as many papers as you can is one alternative, as eSigning technology is now widely accepted and trusted.

Making the payment procedure digital is an additional option. On closing day, you'll make it quick and simple for clients to deposit funds into the escrow account if you use a secure payment platform for all closing charges. They will not only save time, but they may also be less concerned about wire fraud and bad checks than they would be with other typical payment options during closing.

Thank you for reading this post. If you have questions or clarifications about insurance companies, IndyLegal Title Services is here to assist you!

The majority of real estate agents are paid commissions that are given directly to the brokers and are calculated as a percentage of the sale price of the property (commissions can also be flat fees, although such are considerably less frequent).

Real estate agents are salespeople with a license to conduct business under the supervision of a designated real estate broker, who makes sure the agents abide by local, state, and federal real estate regulations. Agents are not allowed to work on their own and cannot be paid directly by their clients in commissions.

Real estate agents are employed by brokers who are free to work on their own. One designated broker works out of each real estate office. All commissions must be paid directly to a broker, who divides them with any agents participating in the deal.

If they are members of the National Association of Realtors (NAR) and abide by its code of ethics, real estate brokers and agents may both use the title of Realtor.

How Do Real Estate Commissions Work?

A listing agreement is a contract that the seller and listing broker sign when a property is placed on the market. It specifies the listing's terms, including the broker's pay, which is typically a commission. The commission is always negotiable, it's vital to remember that. In reality, any attempt, however subtle, by members of the real estate industry to impose standard commission rates is illegal under federal antitrust law.

Although they could be greater or lower depending on the state of the market, commissions typically vary between 5% and 6% of the final transaction price.

realtor showing couple the home

The seller is responsible for paying the commission unless the buyer and seller agree on a split. It may be claimed that the buyer always pays at least some of the fee, either directly or indirectly, as the majority of sellers include the commission in the asking price (by an increased cost of purchase).

With their sponsoring brokers, the seller's agent and the buyer's agent have agreements that detail the agent's percentage of the commission. Any other split they choose is OK; it can be a 50/50 split between the broker and the agent.

How Commissions Are Shared?

Commissions are typically shared between multiple parties involved in a transaction or sale. The specific way commissions are shared depends on the industry, company policies, and the agreement between the parties.

In general, commissions are divided between the salesperson who made the sale and the company that they work for. The percentage of the commission that each party receives can vary depending on several factors such as the size of the sale, the type of product or service being sold, and the individual agreements between the salesperson and the company.

In some cases, commissions may also be shared between multiple salespeople who worked on the same sale or transaction. This may be done on a predetermined basis or through negotiation between the parties involved.

In addition, in industries such as real estate, commissions may also be shared between the buyer's agent and the seller's agent. Again, the specific percentage of the commission that each party receives can vary depending on several factors.

Ultimately, the specific way commissions are shared depends on the industry and the specific agreements and policies in place within that industry.

Mortgages with no-closing costs require the homebuyer to cover none of the necessary closing charges. Closing costs are covered by the mortgage lender on the buyer's behalf.

There is no such thing as a house purchase with no-closing charges, which is why no-closing cost mortgages are frequently referred to as "zero-closing cost mortgages" or "no fee mortgages."

In this part, we'll first go over how no-closing cost mortgage works, their benefits, and how much closing costs will be for you to purchase a property.

How Do Mortgages With No-Closing Costs Work?

Because purchasing a property and getting a mortgage costs money, "no-closing cost mortgage" is misleading. Every loan has taxes and recording fees. Loan origination and discount points are sometimes waived. The term "lender-paid closing cost mortgage" better describes how no-closing cost loans work. The lender pays the buyer's closing fees in a no-closing-cost loan.

Mortgage lenders offer higher mortgage interest to offset the buyer's closing costs. Market factors affect closing cost-interest rate tradeoffs. The no-cost mortgage option adds $35 per month to a $200,000 mortgage payment at current mortgage rates.

Buyers may request rebates up to their closing cost. Lenders only refund whole fees and may usually trade one percent in closing expenses for a 0.25 percent mortgage rate rise.

The Benefits Of Mortgages With No-Closing Costs

Here are the benefits of a no-closing cost mortgage:

The typical first-time home buyer requires eight years to save for a modest down payment and closing fees without a financial gift or down payment help. For many first-time buyers, eight years is too long. Homeownership is more affordable with no-closing cost mortgages.

mortgage papers with phone and pen

How Much Do Closing Costs For A Property Purchase?

Closing costs average 1.01 percent of a house's purchase price, or $1,001 per $100,000, according to CoreLogic's ClosingCorp. Closing costs include lender, settlement, and title services.

Here are some common mortgage closing costs:

Watch out for the next part as we share additional information about no-closing cost mortgages.

If you have questions or comments, feel free to drop them below.

Thank you!

In this article, we will present what title insurance covers and why you should get title insurance. Here is the information you may consider.

What Does Title Insurance Do For You?

Title insurance is indemnity insurance that protects home buyers and lenders against financial damage that may be incurred due to flaws in the title to a piece of real estate. The most typical kind of title insurance is called lender's title insurance, which the borrower buys to protect the lender. The other type of title insurance is called owner's title insurance. The seller typically pays for it to safeguard the buyer's equity in the property.

What Should You Know About Title Insurance?

Any transaction involving real estate requires a property to have a clear title. Before a title can be given, the title company must search for the property to look for any claims or liens of any type that may have been filed against it.

An examination of public records, also known as a title search, is performed to determine and confirm the legal ownership of a piece of property and establish whether there are any claims on the land. Incorrect surveys and unsolved construction code violations are two examples of blemishes that might contribute to the title being considered "dirty."

Lenders and homebuyers are protected against financial loss or damage by title insurance if a property's title or actual ownership has flaws, such as liens, encumbrances, or defects. Back taxes, liens from mortgage loans, home equity lines of credit (HELOCs), easements, and competing wills are all common claims that can be lodged against a title. Title insurance, as opposed to ordinary insurance, which protects against the occurrence of future events, protects against claims for events that have already occurred.

What Title Insurance Policy Typically Covers?

The following risks are typically covered by the basic owner's title insurance policy:

What Are The Types Of Title Insurance?

Lender's title insurance and owner's title insurance, which might include extended coverage, are the two types of title insurance that are offered. A lender's title insurance policy covers the lender if the seller cannot legally transfer the title of ownership rights to the borrower. Virtually all lenders require the borrower to acquire a lender's title insurance policy. The lender is the sole party protected by a lender's policy from financial loss. When a policy is issued, it indicates that a title search has been completed, which provides the buyer with some certainty.

There is a requirement for additional protection in the form of an owner's title insurance policy because title searches are not foolproof, and the owner continues to be in danger of monetary loss. You must obtain a lender's title insurance to obtain a mortgage loan; however, the owner's title insurance, typically accepted by the seller and given to the buyer as additional protection against title flaws, is completely voluntary.

After you have paid your mortgage in full and are no longer responsible for its payment, you should consider purchasing owner's title insurance on your property because you will now own a larger portion of it. Consequently, you must lose more money if you file a claim. This is a very important consideration if you intend to spend a significant amount of time in your house.

What Are The Possible Risks You May Have If You Don't Have Title Insurance?

If a title defect is present, the parties involved in the transaction are at severe risk if they do not have title insurance. Imagine a buyer who spends months looking for the home of their dreams, only to find out after the sale that the previous owner had outstanding property tax obligations. 

If the buyer does not have title insurance, then the buyer is completely responsible for meeting the financial obligations associated with this claim for past taxes. They will either have to pay the back property taxes or risk having the home taken away by the agency responsible for collecting the taxes.

Regarding title insurance, the coverage covers the buyer for as long as they own the property or are interested in it. This is the case regardless of how long the buyer has owned the property.

title insurance form and magnifying glass

Similarly, lenders' title insurance protects financial institutions and other mortgage lenders against flaws such as unregistered liens, access rights, and other encumbrances. A lender would be protected up to the mortgage amount if a borrower defaults on their loan and there are any problems with the title to the property.

Before purchasing a property, real estate investors should ensure that the property in question does not have a cloud on its title. For instance, homes in the foreclosure process can still have a few unresolved problems. Buyers should strongly consider acquiring owner's title insurance to safeguard themselves against unanticipated claims made against the property's ownership.

Why Should You Purchase A Title Insurance?

When a title defect is present, the parties involved in the transaction are at severe risk if they do not have title insurance. Imagine a buyer who spends months looking for the home of their dreams, only to discover that the previous owner has outstanding property tax obligations after the sale. 

If the buyer does not have title insurance, then the buyer is completely responsible for meeting the financial requirements of this claim for unpaid taxes. When buyers purchase title insurance, they are covered under the policy for the duration of their property ownership or interest. Similarly, the lender's title insurance protects banks and other mortgage lenders against unrecorded liens, unrecorded access rights, and other problems.

How Can You Purchase Title Insurance?

After the property purchase agreement is signed, an escrow or closing agent shall begin insurance. To protect everyone, lenders and owners often need policies. Title insurance is purchased once at closing. The owner's title insurance costs $500 to $3,500, depending on your state, insurer, and home price.

8315 W. 10th Street
Indianapolis IN 46234
317-214-6023

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