Many people have this perception that in order to purchase property they just need to get a mortgage company to approve them. While that is a very important step in the process, you can't forgo finding a good title company in the process. When it comes to dealing with any real estate transactions, you need to make sure you have ample protection against the various things that could go wrong. Even if everyone you are dealing with is operating in good faith, you can't afford to take any chances. |
Unless you are paying cash for your new home, your mortgage company is going to require you to purchase different kinds of insurances. One of the policies you have to get has to come from a title company. This is because the lenders want to make sure that their investment in helping you to purchase your home is protected. If you are buying property that has been owned before, its ownership history is being kept by your local government. Sometimes a property can change hands so much that the right ownership information is not on file. There may be discrepancies in what is recorded in the files that are kept by your local government and by the seller. The files also contain information regarding every type of lien, mortgage and loan made against the property.
When a property is sold, if there are any old debts against the deed, they can interfere with the sale of that property. In order for the deed to exchange hands and for a new owner to lay claim to that property, all of the old liens and debts against the title have to be paid off. While this may not seem like it is anything you should be concerned about, you have to remember that your lender needs to make sure that their interest, which is your purchase is protected against any omissions and inaccurate records that may be on file with the local government.
If you were to purchase a property that has discrepancies in its ownership files and you don't have the right coverage, you could end up with a big problem. Any entities that have liens against that deed could come after you for those debts. You could also end up homeless. Even though this is unfair, it is perfectly legal. Those entities don't have to necessarily bring forth their claims before you purchase the property either. They can file their claim at any time between the time you purchase the property or several years or even decades later. To prevent you and your family from having to deal with such a travesty, you need to find a good title company to offer you a policy that will provide you with the peace of mind you need. Although this may be an expense you did not originally account for, you can use it to your advantage. Shop around and get a quote from each title company you are interested in before you choose just one to provide you with coverage.
Having a title company can really make the difference in your next transaction. East Lansing, MI residents can find out more here: http://www.libertytitle.com.
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