For Sale By Owner - Free Online Title Resources

Ensuring Your Real Estate Transaction is Legal and Smooth

When you've invested a significant amount of time and energy into selling a home, you can't afford to let it fall apart at closing.

Title is the most important part of any real estate transaction. No one company recognizes the importance of this more than BBC Title Agency.

What are common defects of title and how am I protected?

Title research, although generally thorough, may leave major defects uncovered. In the event of unearthing ownership problems, the unprotected buyer stands to lose their entire investment. Not only is the initial investment jeopardized, but rectifying the situation may take time and money to settle in the courts. Both scenarios are less than ideal when entering into a purchase agreement or a mortgage.

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Your title policy is prepared to protect you against any incurring defects that may cause loss or void legitimacy of title. Common defects include fraud, unpaid taxes or forgery. Included in the defects can be simple errors such as property description errors, poor public record research or a typo made at the records office.

If a claim is made against your property BBC Title Agency will then step in to defend your ownership protected by your title policy. Any adverse claims or legal action that may arise from defects or encumbrances your policy covers will be turned over to BBC Title Agency. You will then be indemnified from any loss up to the amount of your policy.

Owner's Policy

An owner's title policy protects the interest of the owner of the property. What this means is that anyone listed as an owner is protected under the policy terms. Basically the policy works as an assurance from seller to buyer that the title is good, marketable in the future and the property can currently be bought outright.

If the title should ever be challenged, the owner's title insurance policy will work to protect the owner and their investment. Challenge or question of the title can lead to costly investigations, legal action and loss of property with no reimbursement of investment. Fortunately for the policy holder, their investments and assets are insured and their policy provider will handle what could be a lengthy process.

The owner's policy is traditionally mailed directly to the owner and is valid as long as the owner maintains interest in the property. If in the future the owner sells, the policy will expire at the time of ownership change over.

Mortgage/Loan Policy

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In the instance of awarding a loan to a buyer, the buyer is required to take out an insurance policy on the loan. The policy is usually paid for by the buyer (although always negotiable) and covers the full amount of the loan.

Lending companies require the buyer to insure their loan as a means of protecting their assets. Lenders, like the property owners, stand to lose their investment in the case of a challenge of title.

Since loan policies insure the amount of the loan, the policy is only worth as much. The policy covers monetary value, once the buyer has re-paid that amount, the policy is no longer necessary or valid.

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