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A New Home Search

After several years of diligently saving money, I’m nearly ready to purchase my first home. Because I’ve been thinking about buying a home for so long, I know exactly what I want my house to look like. I desire a place that has three bedrooms and three bathrooms. I also need a quiet space to set up my home office in. I want a massive, walk-in closet in my master bedroom. My master bathroom needs to have double vanities, a tiled, walk-in shower, and a Jacuzzi tub. On this blog, I hope you will discover how to set priorities during your new home search. Enjoy!


A New Home Search

3 Questions To Ask Before Obtaining Title Insurance

Elli Jokela

Obtaining title insurance is part of the process of buying a home. After the real estate title service thoroughly researches the title of the home, it will obtain coverage. The coverage should provide you with protection from a number of situations related to the title of the home. If you are buying a home, here are some questions about title insurance you need to ask before closing. 

Who Is Paying for the Title Insurance?

Both a lender's and buyer's insurance policy are available through the title service. Who is responsible for paying them depends on the laws in your county. In some areas, the buyer is supposed to cover the cost. In others, the seller might be required to do so.  

Even though you might be responsible for paying the costs, you can still negotiate with the seller over the fee. If you can get the seller to agree to paying all or some of the costs as part of helping with closing costs, get it in writing. The seller might be motivated to help with the insurance if he or she needs to sell the home quickly or believes that you might not follow through with the purchase.  

Is Additional Coverage Available?

Title insurance is designed to protect the buyer if it is later discovered that there was a lien or other issue with the title. It is basically your assurance that even if the title service failed to uncover the truth about the home, your investment is protected.  

A basic policy typically protects you from situations, such as an undiscovered liens and the appearance of long lost heirs. If you believe that the coverage is not enough, you more than likely can ask for additional coverage. It is important to note, that if you do opt for the additional coverage, you could face a higher premium.  

Are Problems With the Lien Covered by the Insurance?

Before a policy is issued and after the title service has investigated the title of the home you are buying, a report will be provided to you. The report will detail any issues that were discovered with the property, such as a lien from a contractor.  

Ideally, the seller should be willing to clear up any issues to avoid having the sale called off. However, if the issue seems minor, the seller might try to convince you to continue with the process. If you do, there is a good chance that the insurance policy you receive will not cover the issues. In fact, the policy might specifically state that it will not.  

Since insurance providers differ, you need to ask if it is possible to get coverage for the issue. The provider might be willing to examine the circumstances and offer coverage anyway. Contact a real estate title service, like TitleSmart or a similar location, for more help and information.