A lot of people presume that they will save themselves a substantial amount of money if they acquire title insurance with a title company rather than through an attorney. What they do not realize is that the cost of title insurance is regulated by the state, and the cost will remain the same whether they decide to use a title company or an attorney. The wise decision is to find a skilled and experienced real estate attorney to handle the closings on all of your real estate transactions.
Title insurance misconceptions spread like wildfire amongst home buyers and investors. Aside from being a special kind of insurance, myths that target title insurance continue to keep people from understanding the importance of the coverage they need. To help you fully comprehend why this form of insurance is essential when it comes to buying property, we will set the facts straight and negate some of the common myths regarding title insurance.
For those unfamiliar with the subject matter, the purpose of title insurance is to protect the insured from matters pertaining to the history in the chain of title of the property. It is designed to protect the purchaser from financial losses from flaws in their real property titles, and liens, code violations, and encumbrances that may have been missed when the title and lien searched were performed. These include instances of invalidity of contracts regarding mortgage loans as well as the inability to enforce policies in the former. It is the job of attorneys and title companies to assure their clients that the titles purchased by their patrons are legitimate.
Now while many believe that is more financially feasible to use a title company when dealing with these matters over an attorney, they are mistaken. This is due to the fact, that the average title company settlement fee averages $450-$850 or more depending on the final value of the property. On the other hand, settlement fees for an attorney typically range between $650-850 based on their experience.
With this in mind, one can expect to pay about the same for an attorney as they would a title company. The above being stated, in matters regarding more affluent or lavished properties, one would be better served in utilizing an attorney over a title company. It is also worth noting that the fact that a title company may contain attorneys within it does not necessarily mean that the title company’s attorney is involved in the processing of the transaction. It is always recommended that one retains a legal counselor in all instances to assure that their best interests are being considered.
Another common misconception of title insurance is that all title insurance coverage is the same. What people do not realize is that just like homeowners or automobile insurance, there are many different title insurance underwriters, and most experienced attorneys work with A rated companies that have been around for years, and will properly handle a claim if one should arise, whereas many title companies use B or C rated underwriters that cannot offer the same level of protection.
Another Misconception in the title industry is that one does not need legal advice if the contract used in the closing is considered to be “standard.” In the world of contracts, there is no such thing as a standard contract that does not require legal advice. It is always strongly advised that one seeks out an attorney to guide them through every contract they encountered in the field of real estate to prevent loss or misunderstandings on the side of the client or their real estate agent.
At Kadoch Law Group, we are dedicated to making sure you receive the utmost customer service. We will cater to your needs and cover all of your questions and concerns in a timely manner while also keeping you informed of all the progress in your unique case.
Contact us to schedule a free, no-obligation consultation in which we can answer your questions and recommend the best steps to take.