What is a title company?
A title insurance company is one of many players that you will encounter on your road to property ownership. The role of a title insurance company like Maverick Title Services, LLC is simple: We ensure that the seller has all of the rights to sell the property to the buyer – free of encumbrances like mortgages, taxes, and other restrictions.
A title insurance company can also conduct the closing. It maintains escrow accounts where your closing costs are secured until the day of your closing.
What is title insurance?
Title insurance provides financial protection against title problems that do not arise at the time of your closing – such as issues that were not found in the public records, were missed in the original title search process, or that arise from forgery and fraud.
Title insurance offers property owners’ financial security and safeguards the financial lenders that invested in your purchase should anyone make a claim to the property in the future.
Who do we provide title services to?
Maverick provides a variety of title services to satisfy any concerns about clear title. We perform title searches, prepare documentation for closing, and often offer title insurance to back up our title research findings. For a full list of our services, click here to visit our Services page.
How many types of title insurance are there?
There are two types – a lender’s policy and an owner’s policy. Generally, the buyer is responsible for paying for both policies of title insurance at closing.
A lender’s policy protects the lender with an amount of insurance coverage that typically equals the amount of the loan. The insurance coverage decreases as mortgage payments are made and the loan amount reduces.
An owner’s policy protects the owner for the purchase price of the property. An owner’s policy does not decrease as mortgage payments are made.
Who selects the owner’s policy of title insurance company?
In most real estate closings, there are three parties who can choose the title insurance company of their choosing: the seller; the buyer; and the lender.
Normally, the buyer submits an offer, directly or through an agent, to the seller or seller’s agent. Standard practice then allows the buyer to select the title insurance company.
However, if the seller or seller’s agent does not approve of the buyer’s choice of title insurance company, the seller can propose an alternative title insurance company.
What is the difference between a title and a deed?
A deed is a document that legally binds the transfer of property from one owner to another owner. At your closing, the deed is signed transferring ownership of the property from the seller to the buyer. It is then filed with the county clerk. A deed is a public document.
Title refers to ownership interest in the property other than the seller. This could be anything from a taxes owed on the property to a judgment lien against the property.
What steps are taken before title insurance is issued?
Maverick searches the following prior to the issuance of title to ensure there is no other potential ownership interests or claims with respect to the property:
- Other debts (i.e. home equity loans and lines; financing for home improvements)
- Unpaid property taxes and tax liens
- Unpaid income taxes resulting in tax liens
- Unpaid debts for repairs
- Unpaid homeowners’ association dues
- Mechanic’s liens by contractors and subcontractors
- Other restrictions (i.e. age-specific communities)
How to choose the right title insurance company for you
Your lender will suggest a title insurance company to you. In fact, they are requested by the Consumer Finance Protection Bureau to provide you with a list of closing services companies, including title insurance companies. Your lawyer and even your friends and family many have recommendations.
The fact is you can save money by researching and finding the best title insurance company for you.
Maverick Title Services, LLC provides industry leadership, experience, and resources to our clients resulting in the solutions and confident execution of your title insurance. We are confident that we are what you want, need, and expect of a title insurance company.