Cost Title - Everything You Need to Know About Titles

Frequently Asked Title Questions

December 6th, 2021

What does a title insurance policy protect against?

Title insurance protects against claims from defects. Defects are things such as another person claiming an ownership interest, improperly recorded documents, fraud, forgery, liens, encroachments, easements and other items that are specified in the insurance policy.

Who pays for title search buyer or seller?

The title search protects the buyer. It is in the buyer's best interest to have a search performed and then obtain title insurance. Therefore the buyer is the party who requires, orders, and pays for the search.

What do I bring to closing?

Photo ID.
Outstanding documents or paperwork for the title company or mortgage loan officer.
Certified or cashier's check made payable to the title or closing company for closing costs that aren't being deducted from the sales price.

Can a house be sold without a clear title?

You can't transfer ownership of a property until you “clear title.” That means you've proven your title to the house is free of any clouds or defects such as liens, judgments, or bankruptcies.

How do I start a closing business?

The legal requirements to open a title or escrow company will vary from state to state.

How important is title insurance?

An Owner's Title Insurance Policy is your best protection against potential defects that can remain hidden despite the most thorough search of public records. A Lender's Title Insurance Policy also exists to protect your mortgage lender's interest.

Do realtors get kickbacks from title companies?

When applied to the real estate industry, kickbacks are commonly seen during the transaction process. Service companies (e.g. escrow companies, title companies, and termite companies) will often incentivize real estate agents to use their services in exchange for generous gifts.

Are closing costs paid by seller or buyer?

Closing costs are paid according to the terms of the purchase contract made between the buyer and seller. Usually the buyer pays for most of the closing costs, but there are instances when the seller may have to pay some fees at closing too.

Is title insurance a waste of money?

As with many other types of insurance, an owner's title insurance policy can feel like a waste of money if you never need to use it. But it's a small price to pay to protect your interests in case anyone challenges your title after you close on your home.

Should I use a title company or attorney?

They are the same whether an attorney or a title agent is facilitating the process. Using an attorney can actually save the parties money by performing double duty as an attorney and a title agent; a title agent cannot do the same.

Who chooses title company buyer or seller?

The answer to this question is YES. The accepted practice in real estate industry is for the buyer to submit an offer to purchase a property either alone or through an agent. The buyer will then select a title company.

What does a title company do?

The role of a title company is to verify that the title to the real estate is legitimately given to the home buyer. Essentially, they make sure that a seller has the rights to sell the property to a buyer. The title insurance company also may be responsible for conducting the closing.

Who pays closing costs on for sale by owner?

Home closing costs usually amount to two to four percent of the purchase price. In some states, buyers pay closing costs; in others, the seller and buyer share those expenses.

Who pays for the title company?

So, who pays for title insurance? As a general rule of thumb, the homebuyer is responsible for purchasing both lender's title insurance and owner's title insurance. This expense can range from between $150 to $1,000 or more depending on the amount of coverage you want.