Q:Do I need to get my own title policy for the purchase of a short sale, or can I rely on the one the seller pays for and the bank provides to me at the closing? what happens if all liens have not been presented?
?Kate, Portage, MI
A: I strongly recommend having title work done showing a clear title meaning the seller has satisfied all liens found during the title work prior to closing. A title policy is like an insurance policy saying there are no liens or clouds on the title when they convey it to you. The mail away title companies I have personallhy worked with handling the mainstream processes for a lot of these short sale and foreclosures have been great but you can always ask to use your own title company of preference as part of your negotiations and they may allow that or they may suggest that you use your title company for a courtesy closing after the other title company does the title search and provides the title policy. The courtesy closing allows you to close in person signing documents locally at your own title company and you can ask questions but they will charge a fee for this generally between $100-$500 and of course it could be more.
Katie Tucker is a Realtor? with Keller Williams Town & Country in Tallahassee, Florida
A: The seller usually purchases an ower?s title policy and the buyer usually purchase a lender?s title policy if the buyer is using a loan to purchase. It is usually a requirement of the loan to purchase title insurance to protect them as well as the buyer if there are title issues. If you are purchasing with all cash, I would still purchase title insurance to protect you. The seller?s policy doesn?t protect a new buyer.
Bev
Beverly Houlier is a Realtor? with Hilltop Chateau Realty in San Diego, CA.
A: Title insurance guarantees the simple ? yet vital ? fact that you own your property and no one else has a claim to it.
There are two types of title insurance policies: the lender?s policy and the owner?s policy. The lender?s policy protects the lender?s interest for the amount of the loan ? not necessarily your home?s purchase price, if the two figures differ. This type of policy is issued to institutional lenders. In addition, the lender?s title policy covers any losses that the lender would incur if the interest of another creditor, such as a second mortgagor, takes precedence in the event of a foreclosure.
The owner?s policy covers your losses or damages if it?s determined that the property belongs to someone else, there?s a defect or lien on the title, the title can?t be marketed, or there?s no access to the land. Your owner?s policy will stipulate the date by which the terms are effective ? the key to your ownership rights.
Most homeowners never have to file a title insurance claim; however, that doesn?t mean that you should write this form of insurance off as superfluous. In the event that a third party makes a claim about your property, title insurance can make the difference in retaining your house.
Lee Dworshak is a Realtor? with Keller Williams LA Harbor Realty in Rancho Palos Verdes, CA.
A: There is no rule stating that the seller or bank will provide you title insurance. They sometimes pay it to help a buyer purchase a home, but it is not a given.
You will want title insurance for the purchase on ANY real property. Speak with the title insurance company representative as to what coverage you have for unrecorded liens and ask about what additional coverage is available to you.
Adam Aguilar is a Realtor? with Reliantra in West Toluca Lake, CA.
A: You should be able to rely on the title seller provides. Just make sure it is a reputable title company and you should not have any problems, after all it is the title company insurance.
Tami Winbury is a Realtor? with Keller Williams Realty in Oxnard, CA.
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Related posts:
- How Do I Find Out If There Are Liens On A Property?
- Do Title Attorneys Always Have To Be Present At A Sale?
- In Short Sale Which Agent Should Figure the Closing Costs?
- How Much Cash Will We Have To Pay Out Of Pocket To Buy A Home?
- How Much Will Everything Cost At The End Of My Home Purchase?
Source: http://www.realtor.com/blogs/2011/12/16/do-i-need-title-insurance-if-i-am-buying-a-short-sale/
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