Purchasing a home is one of the most expensive and important purchases a home owner will make. Understanding the pitfalls of the loan process will make the process smooth. Experienced Realtor Beverly Taki explains Title Insurance to first time home buyers in a series of blog posts.
St. Louis, MO, December 09, 2016 — Beverly Taki, a Real Estate Agent with Keller Williams Realty Company in St. Louis, Missouri, http://stlouiskirkwood.yourkwoffice.com,has a philosophy when it comes to purchasing a home. According to Beverly, “Purchasing a new home is a big step, both emotionally and financially” Beverly’s blog on her Keller Williams blog site http://www.beverlytakistlouis.com/2016/12/02/financial-aspect-of-purchasing-a-new-home-and-title-insurance/, will explain, over several blogs, the emotional aspects of buying and selling a home. Beverly explains “Title Insurance is a financial aspect of purchasing a home since the buyer typically buys this insurance through the sales process. With title insurance, you are assured that any valid claim against your property will be borne by the Title Company. Although the odds of a claim being filed are slim indeed, the confidence in knowing your home is yours is a valuable reason for purchasing title insurance”.
Title Insurance – what is it and why do new home buyers need it?
The purchase of a home is most likely one of the most expensive and important purchases a home owner will ever make. Both the home owner and the mortgage lender will want to make sure that no individuals or governmental entity has the right, lien, claim or encumbrance to the property. Beverly recently represented a buyer on a new property, utilizing the services of one of the St. Louis area’s branch offices of Title Partners Agency.
Beverly explains, “Before issuing a policy, the title company performs an extensive search of relevant public records to determine if anyone other than the purchaser has an interest in the property. The search may be performed by title company personnel using public records, or 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 the home owners’ title policy is ever filed against the property, the title company will pay the legal fee involved in defense of the home owner’s rights, in addition to any covered loss arising from a valid claim. The protection which is in effect for the duration that the property owner, or their heirs, own the property and is theirs for a one-time premium paid at the time of purchase.
Title companies typically issue two types of policies- “owner’s”, which covers the home buyer, and “lender’s,” which covers the bank, savings and loan or other lending institution over the life of the loan. Both policies are issued at the time of close for a one-time premium.
The fact that title companies work to eliminate risks before they develop makes the title insurance different from other types of insurance that home owners may have purchased. Most forms of insurance assume risks by providing financial protection through a pooling or risks for losses arising from an unforeseen event, such as 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 the property changes ownership.
The risk elimination has financial benefits to both the home buyer, 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 process works to keep the costs down for the title company and thus, the premiums can be kept low for title insurance, verses other insurance policies that homeowners might need to purchase.
Beverly’s years or experience as a Realtor who has represented hundreds of buyers and sellers, allows her to know the pitfalls of purchasing and selling a home. She added “Title insurance is just one of the financial aspects of purchasing a new home.”
For additional information on why it is important to purchase Title Insurance, or on purchasing or selling a home, please contact Beverly Taki at 310-456-4843 or email email@example.com
10936 Manchester Road
St. Louis, MO 63122