When buying a house, it is necessary to choose good title insurance before making the purchase. This is one of the most important steps in the whole process, because it protects you from all the title problems that may arise because the previous owner did not settle their obligations and debts on time.
It is likely that the lender will ask you to buy title insurance at the very beginning in order to optimally protect the investment they will make. All this tells you that choosing a title insurance company is very important and that you need to take the time to find the right one. Here are some questions you will want to ask before you decide to hire them:
1. What are their rates?
The first thing you will want to discuss with the title insurance agency you are considering hiring is what their rates are. While this sounds like a quite logical question, it is important that you understand its significance.
In some countries, there are well-defined prices for insurance policies, and they are usually around a thousand dollars. However, this is not the case with every one of them. In other countries, title insurance is not regulated in this way, so prices vary significantly from one agency to another.
This means that if you do not ask this question at the beginning, you can pay the insurance policy much more than you planned. And when you’re buying a house, you don’t really need any additional expenses.
Avoid such unpleasant situations and always ask for the price of insurance, as well as for any additional fees. Once you know exactly what the rates of an insurance agency are, you can make a better decision for yourself.
2. How much time do you need to do the title search?
Another question that is important to ask is how much time does a certain title insurance company needs to do a title search. Their effectiveness in this part of the process can be crucial if you have little time to reach a settlement. On average, this time is between 10 and 20 days, so this can be your starting point in considering their response.
If you see that they are overwhelmed with work and that they need more than 3 weeks to do a title search then it may not be the best idea to hire them as they will not be able to help you in case you are in a hurry.
3. Is there any conflict of interest?
When choosing your title insurance agency, it is crucial to make sure that there is no conflict of interest, ie. that the company is not owned by builders or lenders, as this significantly affects the credibility of their services.
Make an effort to find a company that is a neutral third party, such as Sunnyside Title, and ensure that you receive services in accordance with prescribed standards.
Before buying a house, it is necessary to buy title insurance to protect yourself from costs and legal problems due to debts that have not been settled by the previous owner.
When choosing a title insurance company, it is important to ask them the right questions in order to choose the best one. Find out what their rates are, how long it takes them to do a title search and whether they are a neutral third party that will provide you with the best possible service.