You’re a real estate professional and you know the homebuying process can be overwhelming for many of your clients. Owner’s title insurance is an often misunderstood fee when closing, so it’s vital you’re able to effectively communicate how it protects and benefits your clients.
What is title insurance?
Owner’s title insurance is a policy that protects homebuyers’ property rights. For the same reasons that the bank requires a lender’s insurance policy, a homebuyer obtains owner’s title insurance to protect their legal claims to the property.
How it protects your clients
Say, for example, your client recently purchased a new home from a builder, but the builder failed to pay the roofer. Wanting to be paid, the roofer filed a lien against the property. Without owner’s title insurance, your client would be responsible for paying this existing debt—meaning they’d be paying the roofer out of pocket instead of purchasing something nice for their new home, like new living room furniture. This is just one example of how owner’s title insurance protects homebuyers’ from various significant risks. With owner’s title insurance, your client would be protected from certain legal or financial responsibilities.
The good news is that owner’s title insurance protects homebuyers financially, as long as they or their heirs own the home. For a low, one-time fee, homebuyers can rest assured, knowing they are protected from inheriting existing debts or claims to their property.
When you’re ready to talk title insurance with your clients, rely on your locally trusted title experts at AmeriTitle.
For more information about the benefits of title insurance, please direct your homebuyer clients to www.homeclosing101.org.
All publications of the American Land Title Association are copyrighted and are reference herein by specific permission from the American Land Title Association (ALTA). http://www.alta.org