Meet Happy Homeowner Harold. Harold’s home has a clean title. He did his research, hired a title company, bought title insurance, and now he owns his home without a hassle. Harold is the single, undisputed king of his castle. There is no one else and no other party that can make any kind of legal claim of his ownership.
Then there’s Sadsack Sam. Saddest Sam the South has ever seen. Because he opted out of title insurance and closed on his home without any legal advice. Now a lawyer sent a summons saying Slippery Sue inherited the house when her distant relative died 14 years ago. It’s Sam’s word against the last remaining relative’s. And Sam stands to lose.
What is a clean title?
A clean title is a homeowner’s title without any type of lien or levy from a possible owner, creditor, or interested party. Because a clean title proves there is no question on legal ownership. Therefore, there is no error in the public records. And you are the sole homeowner.
How do I get a clean title?
The best way to get a clean title is to hire a professional title company to research and ensure your title is clean. A title company searches public records (deeds, mortgages, liens, wills, and more) and any documents that affect the property’s title. The company verifies the legal owner of the home and determines all debts owed against the property.
Since the title company does all the legwork leading up to the closing, you and your agent will want to schedule your closing with a title company you trust.
What about insurance?
Nearly 100% of the time, your lender will require you to have title insurance. This type of insurance protects the lender if a title or ownership problem comes up after the property is purchased.
A lender’s policy is issued for the amount of the mortgage. The coverage decreases as you pay down your loan. Once the mortgage is paid off, the lender’s policy ends.
An owner’s policy (for buyers paying cash) protects you from the full price of your home, plus legal costs if any issues come up after you close. The policy is based on the cost of your home, and it will cover you as long as you own vested interest in the property.
You’re not required to purchase an owner’s policy but you run the risk of being forced to fight for your rights without it.
What other benefits will title insurance give me?
Title insurance is affordable, especially when you think of all you could lose if something turns up on your home. Title insurance will:
How do I choose a title company?
Since a title company is your last line of defense when you buy a home, you’ll need one with a solid reputation and proven track record.
You want only the best.
Clean Title, LLC, is researching the past to protect your future!
We’re proud of our track record and the recommendations our clients have shared. (Check out some of our reviews on our Facebook page).
With a blend of exemplary service and professionalism, we ensure our clients know exactly what’s happening every step of the way. We want you to feel confident that when you sign on the dotted line, you’ll be turning a house into a home.
Check out our home buyers’ Clean Title FAQs and reach out at 985-277-5095 anytime with questions!