OfflineReceiving insurable title
When purchasing a property, always get title insurance. Title insurance protects you, the buyer. The title insurance company reviews all transactions on the property for several years. They check to be sure mortgages and liens were released and removed from the public record when they were paid. They also review that all previous owners signed the transfer documents when a sale was made. If there are future claims against the property then the title insurance company will be responsible for curing the problem at their expense.
There are other ways of correcting title errors or claims. It is called a Quiet Title Suit. Typically the owner of the property would file suit against anyone who claimed an interest in the property. That person would have the opportunity to defend their claim against the owner of the property in court. If the judge determines the claim is not justified, the court has resolved the dispute and quieted the title of the property. This process can take months and be relatively expensive depending on the complexity of the claim. An example would be a tax lien is purchased, the redemption period expires and the county issues a “collector’s deed” transferring ownership to the tax lien purchaser. The tax lien purchaser will have to quiet title on the property in order to be able to borrow against it or sell it by warranty deed.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Thanks for providing the information and the insight on title insurance. The quiet title process information is very useful, especially I am looking into a future tax sale in 2010. Thanks for sharing the information. Believe and Achieve!
- Joe
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Thanks for sharing title insurance is very important, especially when purchasing REOs, although it doesn't cover anything after period of closing (meaning any future disputes to the title).
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What I understand is that the basic premise of title insurance is a series of checks and balances to insure that everyone has dotted their eyes and crossed their tee's which is done by the title insurance company. If there are any future claims against the property the costs will be absorbed by the title insurance company? And any errors or claims against the property is taken care of by a "Quiet(not "Quit") Title Suit"? Lastly, dealing with REO's ONLY...the title insurance only lasts up to closing, then you have to have Home Owners Insurance in place? or does the tenant cover this at their own expense? I guess i'm thinking of fire and water damage, so on and so forth. Have I got any of this right?
Bill G
Never Give Up, Never Surrender!
Title insurance is for the past. So if you closed on a property today then the title is insured up to today. Anything that would happen after todays date would not be covered. Now if a lien was placed on the property and it was coming up on the title after you purchased it and the lien was for something that happened prior to you purchasing the home then the title company would be liable for taking care of that lien. They are insuring clear and marketable title free of any liens and encumbrances.
Home owners insurance is not the same as this, you are right in thinking that it covers floods, and fire. I hope that this helps!
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Yes it does help. Thank You.
Never Give Up, Never Surrender!
Thank for the information because I look at two REO. I glad to has read this because buying the property.
Angie
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