When you purchase a home, you must ensure the property is safe and legally belongs to the present owner. Various tasks provide this assurance, such as scheduling property inspections and hiring a title insurance company. Understand what title insurance companies are, what they do, and why they are vital to the home buying process.

What Do I Need To Know About Title Insurance Companies?

What They Are & How the Companies Work

Title insurance companies make sure properties for sale are legitimately for sale and legally on the market.  Their searches involve reviewing all real-estate records. The documents show who owns the house, and therefore who can legally sell the property. 

Documents like property liens, foreclosures, open mortgages or judgments, unpaid taxes, and remaining HOA fees can slow or prevent property sales. Title companies’ searches prevent you and lenders from fraudulently buying homes. Both you and your lenders will receive a title company’s insurance, which prevents any issues they miss from affecting financial accounts.

Your selected company also acts as your title closing agent. Typically, closings occur at the title company’s office, but can take place at a convenient location for all parties. The process includes signing, funding and recording pertinent documents like mortgages and deeds.

Why You Need One

Without a title insurance company, you cannot determine if the property seller is the rightful owner. If the owner does not have “maximum rights to sell,” and you purchase it, you could deal with many issues. For example, another person may claim partial ownership.

A property search ordered by your title insurance agent also provides reassurance. Title company services are preventive measures that allow you to purchase a property confidently. 

Work with a title company offering years of experience and a pristine Better Business Bureau record to streamline your estate purchase. First Financial Title Agency of Minnesota, Inc. wins on both counts and provides home buyers, sellers, and real estate agents throughout the Burnsville/South Metro area with a full suite of title services. Their staff offers a combined 400 years of experience, and they have Minnesota Land Title Association (MLTA) accreditation. Call them at (952) 831-5010 to schedule your prospective home’s title search, or learn more about the business online. Find additional property buying tips on Facebook.