What Every Real Estate Agent Should Know About Owner’s Title Insurance

MAKE SURE ALL OF YOUR CLIENTS ARE PROTECTED

You’re a real estate agent, so you know that buying a home can be overwhelming for your clients. Homebuyers can feel confused and frustrated by the mounds of paperwork they have to sign. Plus, the fees associated with closing can sometimes be overwhelming even to an experienced buyer.

Owner’s title insurance is one of those items often misunderstood by homebuyers at closing, yet its value is tremendous. As an important advisor to your clients, you are in a position to help homebuyers understand the benefit of owner’s title insurance and the dangers that can be incurred without it.

WHAT IS TITLE INSURANCE

Owner’s title insurance is a policy that protects homebuyer’s property rights. For the same reasons the bank requires a lender’s insurance policy, the homebuyer obtains owner’s title insurance to protect against possible claims against the title.

HOW IT PROTECTS

Say, for example, your client recently purchased a home and there was a homeowners association (HOA) lien previously filed against the property that wasn’t paid through closing. Wanting to be paid, the HOA contacts your client for payment. Without a title insurance policy, your client could be responsible for paying this existing debt. This is just one example of how owner’s title insurance protects homebuyers from various financial risks. There are extended and expanded policies as well as endorsements available to homebuyers at minimal incremental costs that provide additional coverage. These are often purchased for protection and peace of mind in situations that involve new construction, encroachments or other potential non-record matters.

ENDURING VALUE

The good news is that owner’s title insurance protects homebuyers financially, as long as they own their home. For a low, one-time fee, homebuyers can rest assured, knowing they are protected against possible debts or claims to their property.

Reach out to your local Alliance Title representative to learn how we can help protect your clients with owner’s title insurance.

For informational purposes only. Source: American Land Title Association

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