|
|
 |
 |
Title Insurance and Attorneys
Because the purchase of a home is such a large transaction, there are legal aspects to keep in mind, such as the purchase of title insurance. As a prospective homebuyer, you have the option of buying title insurance from a title company or with the help of a real estate attorney. Like other aspects of purchasing a home, choosing between a title insurance company or an attorney for your transaction may require a little research. Your professional Realtor® can assist in helping you make an informed decision. Keep in mind, the earlier you engage an attorney to assist with the purchase of your home, the better. You won’t be penalized for calling on an attorney before signing your purchase agreement and purchasing title insurance. Title insurance is a valuable protection you can purchase even before you close on your new home. It protects the buyer from such complex issues as incorrect marital status of the owner to previously undisclosed heirs with claims against the property. Not having title insurance could put you at risk of losing your home. Title insurance is not solely for the home buyer. The mortgage lender purchases title insurance to protect their position as the company holding your mortgage loan. However, this insurance policy does not protect you, as the homeowner. As the homeowner or home buyer, you will need to purchase an owner’s title insurance policy, which will remain intact as long as you or your heirs retain an interest in the property.
 Your professional Realtor® or a qualified real estate attorney can also help answer a myriad of questions that may arise in the purchase process. Both are required to stay on top of the latest laws and regulations surrounding homebuying, property and mortgages. In addition, an attorney can also answer questions about income tax and estate tax consequences, property taxes, zoning and special assessments or any restricted covenants that may apply to your community. One of the most vital roles an attorney plays in the home-buying process is to research the title to the property you are seeking to purchase. A check will be conducted to ensure the title is clear and no liens are against the parcel. Once the title has been researched, the attorney must certify to the home buyer, the lender and the title insurance company that the property is, in fact, owned by the seller and that the seller has not placed the property up as collateral on any outstanding loans other than the existing first or second mortgages. The attorney will also determine whether any creditors of the seller have attached the property as security against unpaid debts and that there aren’t any easements or restrictions that may impact the property value. If all of these reviews come out with positive results, the attorney can then focus on drafting the closing documents which are required by various local, state and federal agencies.
Because the attorney serves in an objective manner, the attorney will be responsible for disbursing all of the funds in accordance with the Settlement Statement, which may include paying off the seller’s mortgage, payment of outstanding utility and tax bills and payments for appropriate recording charges. The attorney also makes sure the real estate brokers get paid for their roles in the transaction.
.......................................................................................................................................................................................
|
|
|
|
 |
 |
|
