Some people can get confused about this area of the real estate transaction, but with a little knowledge and guidance, it’s easy to understand. We’ll break down the basics for you.
Buying a home basically entails a search through all of the buyers that have owned the home in the past. A title company’s responsibility is to make sure that those owners did not saddle the property with liens or other issues that have to be cleared up before the home can be sold. Unpaid taxes may be a key source of contention should they be a part of the property and the process of collecting money for the property from those that are responsible for it can sometimes take work. If you get involved with purchasing a home, you also get involved in the liability for all of these aspects and title insurance is one way to protect yourself against those claims.
In addition to this protection, a title company will also typically offer escrow services for the real estate process so that you can have a third party to hold funds if the need arises so that you feel more secure when money changes hands.
As part of the lending agency’s efforts to make sure that a particular mortgage fits the property it has been issued for, they will typically order an appraisal of the home. Appraisers will go through your home and evaluate it to price it accurately, taking into account other homes that have sold in the area that feature similar amenities. The cost for these appraisers is typically part of your loan fees and there might also be work done to make sure that a home falls within the boundary lines of the legal lot of the property. This service is done by a surveyor which can also become part of the loan for the property.
Insurance on your new purchase is extremely important and if the old policy is not being transferred to you, you need to pursue your own insurance. Typical aspects of this type of insurance include protection from natural disasters like tornados and other things that might damage the home. Every insurance policy is different, so evaluate what you want to be covered for and pursue insurance to the effect.