Get A Quote
The Biggest Reasons Real Estate Agents Urge Homebuyers to Buy Title Insurance
Experienced real estate professionals understand the mounds of paperwork and due diligence necessary for a smooth transaction. But inexperienced buyers tend to feel confused and even overwhelmed by a process that typically exceeds their understanding. Lack of understanding and forethought can lead some to pass on valuable title insurance.
Homebuyers often feel that the price of the home keeps going up and up as feed and expenses pile on. When the closing day finally arrives, it’s not unusual for working people on a tight budget to nix any seemingly unnecessary costs. To some, title insurance sounds like the extended warranty cashiers offer at big-box retailers. It can feel like you’re being upsold. But everyday people who fail to secure protection could face a substantial financial loss. That’s why real estate agents should always take the time to explain the value of title insurance to their clients and urge them to secure a policy.
Explaining Title Insurance to Inexperienced Buyers
Real estate professionals routinely work with buyers whose finances are stretched and are looking to cut corners. It’s essential to make sure they understand that buying a home is not always perfect. They are likely paying a firm to conduct title research and review records. Those fees make title insurance seem like a redundancy. That’s precisely the idea a realtor must overcome.
Title insurance protects against the unknown. Even the most determined vetting cannot identify and alert potential buyers about items that are missing from the records. If fear of the unknown doesn’t motivate them to pay the nominal fee, consider comparing this insurance product to others.
For example, people in good health value policies that cover doctor’s visits and medical procedures if necessary. The same holds true for people with good driving habits. They still carry coverage in the event of an accident. Title insurance operates under the same idea that an unforeseen incident could occur. Without coverage, the property owner will be on the hook for legal fees and could take a loss.
Explain to Buyers What Title Insurance Protects Against
There are two basic types of title insurance. The buyer usually purchases one to protect their interests. The other is mandated by some lenders who want to ensure their interests are not negatively impacted. The latter usually covers the life of the loan, and coverage times out when the buyer finishes paying the mortgage. What buyers who see title insurance as optional need to know is just how wrong things could go. These are common problems that arise.
- Unknown filing errors
- Past title signatures are forgeries
- An heir comes forward with a claim to the property
- Undisclosed liens surface
- Back taxes are owed
- Undocumented easements or right of ways exist
If these unforeseen issues still seem too abstract to prompt a client to get title insurance, using a concrete example may prove persuasive. Explain that if a lien surfaces for $50,000, whoever owns the property will be responsible for paying it. Without title insurance, the buyer could be faced with paying that lien, legal fees for any accompanying civil litigation, and still be paying the mortgage. The financial consequences could be severe. Taking the inexpensive title insurance can protect them from that and many other issues.
Real Estate Agents Work with the Best Title Company in Maryland
It’s in the best interest of real estate professionals to develop enduring relationships. Title insurance delivers lasting protection for your clients’ property. When an unforeseen issue crops up, they will thank you for urging them to take a title insurance policy and refer you to friends and family members.
If you are a real estate agent, consider working with the best title company in Maryland. Velocity Title utilizes next-generation technology to deliver the best title services possible. For more information or a consultation, contact Velocity Title today.