7 Reasons Why Every Homebuyer Needs Owner’s Title Insurance

Buying a home is like a rollercoaster; emotional, exciting and intimidating. For a confidence boost, make sure you get an owner’s title insurance policy — here’s why:

Protects your largest investment. A home is probably the single largest investment you will make in your life. You insure everything else that’s valuable to you – your life, car, health, pets, etc., so why not your largest investment? For a one-time fee, owner’s title insurance protects your property rights for as long as you own your home.

Reduces your risk. If you’re buying a home, there are many hidden issues that may pop up only after you purchase your home. Getting an owner’s title insurance policy is the best way to protect yourself from unforeseen title discrepancies. Don’t think it will happen to you? Think again.

Title claims can include:

  • outstanding mortgages and judgements, or a lien against the property because the seller has not paid his taxes
  • pending legal action against the property that could affect you
  • an unknown heir of a previous owner who is claiming ownership of the property

You can’t beat the value. Owner’s title insurance is a one-time fee that’s very low relative to the value it provides. It typically costs around 0.5% of the home’s purchase price.

Covers your heirs. As long as you or your heirs own your home, owner’s title insurance protects your property rights.

Nothing compares. Homeowners insurance and warranties protect only the structure and belongings of your home. Getting owner’s title insurance ensures your property rights are protected.

8 in 10 homebuyers agree. Each year, more than 80% of America’s homebuyers choose to get owner’s title insurance.

Peace of mind. If you’re buying a home, owner’s title insurance lets you rest assured, knowing that you’re protected from inheriting possible debts or legal problems, once you’ve closed on your new home.

To learn more about owner’s title insurance, visit our ALTA HOP Resources on our blog or contact your local Alliance Title representative.

All publications of the American Land Title Association are copyrighted and are reference herein by specific permission from the American Land Title Association (ALTA). http://www.alta.org/

 

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Why 20% of Homebuyers May Not Sleep Tonight

Every year about 20% of homebuyers fail to protect themselves by not getting owner’s title insurance. This leaves them exposed to serious financial risk – causing endless worry and regret.

If you’re thinking of buying a home, here’s what you need to know to protect yourself and your property rights, so you can rest assured once you’ve purchased your home:

Looking for Potential Threats

During the home-closing process, your title professional will help transition the home from the seller to you, the homebuyer, by examining public records. Generally, if a problem is discovered, the title professional works to resolve them before you purchase the home.

However, even after a title search is performed and you purchase your home, problems could arise that threaten your ownership rights. Examples include:

  • Undiscovered tax liens
  • Forged signatures in the chain of title
  • Recording errors
  • Undisclosed easements
  • Title claims by missing heirs* or ex-spouses

Getting owner’s title insurance protects your property rights from threats like these. Here’s a real-life example of how it works:

True Story

A family in Missouri unknowingly purchased their home from a seller who had taken out a separate $419,000 loan on the property. But this fact was not discovered during the closing process, and the family’s lender paid the seller directly instead of paying off the existing loan.

Soon, the family faced foreclosure because someone else had claim against their title. Fortunately, the family had owner’s title insurance. So the title company paid the debt and the family kept their home – and peace of mind.

This story has a positive ending, but without owner’s title insurance, the family could have faced serious costs, and even eviction.

Support and Free Information

To buy your home with confidence, you need to work with a trusted title professional. Alliance Title has experts who will help you throughout the home closing process. They will also advise you on how to protect your property rights and avoid costly problems by getting owner’s title insurance. For more information, contact your local Alliance Title representative.

*Actual coverages may vary by state, company or locality. For exact terms, conditions, exclusions, and limitations, contact your local Alliance Title branch.

All publications of the American Land Title Association are copyrighted and are reference herein by specific permission from the American Land Title Association (ALTA). http://www.alta.org/

ALTA Core Values

Similar to the Alliance Core Values, the American Land Title Association (ALTA) has Core Values that describe how they operate in order to set an example for the industry. ALTA’s Core Values outline the duties they have to customers and partner organizations to conduct business in a consistent and ethical manner. Here at Alliance, we share many of the same ideals and build on them so we can deliver an equally stellar experience to our customers and communities.

Check out ALTA’s Core Values and how they were developed:

https://www.alta.org/business-tools/our-values.cfm

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Avoiding Wire Fraud

If there’s money involved, criminals usually want to steal it. Since real estate transactions have high dollar amounts going around they become huge targets. Check out this video from the American Land Title Association on how to protect your money and advice on if you’ve been targeted:

#alliancetitle #alta #hop #wirefraud #realestate #security

Continuing Education (CE)

Alliance Title & Escrow Corp. is proud to be a certified real estate course provider for the Idaho Real Estate Commission (IREC).

We strive to provide local real estate professionals with high quality CE elective courses available in locations throughout Idaho.

To view a complete list of approved courses for Idaho or to review the IREC attendance policy, visit the Idaho Real Estate Commission’s website.

View Available Courses

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Not Enough Homes At All Prices

You may have known the housing market has very low inventory, but according to the latest findings from Realtor.com, it’s the case for all price ranges. Existing home sales hit 5.6 million and the national median home price went up 3.9% to $250,400 in March. For more numbers and some commentary, check out the article:

https://www.realtor.com/news/real-estate-news/fewer-existing-affordable-existing-homes/?iid=rdc_news_hp_carousel_theLatest

#alliancetitle #markettrends #industrynews #realestate #title #escrow

Homebuyer Title Insurance FAQs

Buying a home is a big decision and likely the largest investment most of us will ever make. Owner’s title insurance helps you buy with confidence because it’s the smart way to protect your property rights. To help you understand how owner’s title insurance works, here are answers to common questions:

What is title?

Title is your right to own or use your property. Title also establishes any limitations on those rights.

What is a title search?

A title search is an early step in the homebuying process to uncover issues that could limit your rights to the property. If a title issue is discovered, most often your title professional will take care of it without you even knowing. After the title search is complete, the title company can provide a title insurance policy.

What is title insurance?

If you’re buying a home, title insurance is a policy that protects your investment and property rights.

There are two different types of title insurance: an owner’s policy and a lender’s policy.

  1. An owner’s policy is the best way to protect your property rights. Either the buyer or seller may pay for this policy. Ask your title professional how it’s handled in your area.
  2. A lender’s policy is usually required by the lender and only protects the lender’s financial interests. The buyer typically pays for this policy, but that varies depending on geography. Ask your title professional how it’s handled in your area.

Why should I purchase owner’s title insurance?

Owner’s title insurance protects your investment in your property from certain future legal claims regarding ownership of your property. For a one-time fee, you and your heirs receive coverage for as long as you own your home. The owner’s policy also covers potential legal fees and court costs for settling claims covered by your policy.

What does owner’s title insurance cover?

Sometimes undiscoverable defects can come up after the title search. Under an owner’s title insurance policy, you are protected against certain undiscovered errors in the title.

Title issues include unknown:

  • Outstanding mortgages and judgments, or a lien against the property because the seller has not paid his taxes
  • Pending legal action against the property that could affect you
  • Unknown heir of a previous owner who is claiming ownership of the property

Unforeseeable title claims include:

  • Forgery: making a false document
    • For example, the seller misrepresents the identity of the person who sold the property.
  • Fraud: deception to achieve unfair gain
    • For example, someone steals your identity and either sells your house without your knowledge or consent, or takes out a second mortgage on the property and walks away with the money.
  • Clerical error: inconsistent paperwork and historical records
    • For example, an unforeseeable discrepancy in the property or fence line can cause confusion in ownership rights.

What does owner’s title insurance cost?

The one-time payment for owner’s title insurance is low relative to the value of your home. A typical title insurance policy costs around 0.5% of the home’s purchase price.

How long am I covered?

Your owner’s insurance policy lasts for as long as you or your heirs own your property. Your life will change over time, but your peace of mind never will.

What happens at closing?

Closing is the final step in executing the home buying transaction. It is the process that allows the transfer of ownership to occur. Upon completion of the closing process, you get the keys to your home!

Where can I get more information?

The American Land Title Association helps educate homebuyers like you about title insurance so you can protect your property rights. Check out www.homeclosing101.org to learn more about title insurance and the home closing process.

You can also connect with your local Alliance office where our friendly professionals are ready to help answer your questions.

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Is Downsizing The Right Move?

With the economy improving and the real estate market heating up, more young people are getting good paying jobs and moving out of the family home. It also means that it could be a good time for those parents to look at downsizing. Assisting your clients in making an informed decision can help you build trust and figure out if it really is the right move for them — saving everyone valuable time.

Check out this article from CNBC on how to decide if downsizing is the right choice:

https://www.cnbc.com/2018/04/09/downsizing-your-home-how-to-determine-if-a-smaller-house-is-the-right-move.html

#alliancetitle #realestate #businessbuilder #millennials #title #escrow

Rate Hikes & Millennial Homebuyers

It’s no secret that interest rates are increasing, but that trend isn’t stopping millennials from buying. That’s pretty important to know because millennials are the largest group of homebuyers in the country! Check out this article from MReport on what types of loans millennials prefer and some other important figures:

http://themreport.com/daily-dose/04-04-2018/rate-hikes-and-millennial-homebuyers

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Tips For A Smooth Transaction

At Alliance Title, we take pride in providing the best overall closing experience for our agents, lenders and customers. Here are some useful steps to help make your next transaction as smooth as possible:

Provide the following to your escrow team:

  • The completed and signed Earnest Money Agreement (EMA)
  • All addendums to the EMA
  • A commission verification form
  • Phone numbers, email addresses and/or fax numbers for your clients and/or the lender they are using
  • Any additional insight or information regarding your customer(s) that may help make the process go smoothly the day of closing, such as your customer(s) need for a translator; they are visually, audibly, or physically impaired; require separate signings due to an unamicable divorce scenario, etc.
  • Homeowners’ association contact information

Other suggestions:

  • Carefully review the title commitment. Should you have questions or concerns regarding the document, contact your escrow team right away
  • Encourage the seller to:
  • Provide payoff authorizations promptly
  • Review their state withholding requirements with their accountant (if applicable)
  • Encourage the buyer to:
    • Shop for the best homeowner’s insurance rates and options promptly
    • Notify your escrow team immediately should an issue or problem arise before the closing date

Always remember that while we will do everything we can to ensure that your customers have the best overall closing experience with Alliance Title. Your escrow team is a neutral third party and cannot represent the buyer or seller or negotiate on their behalf.

Check out our Client Resource Guide or connect with your local Alliance Title representative for our menu of services, checklists and much more!

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