Why Real Estate Agents Should Urge Homebuyers to Buy Title Insurance

Experienced real estate professionals understand that most home buyers have a lack of understanding and forethought when it comes to the value of title insurance. Title insurance is a crucial piece of the home buying process. Here’s how real estate agents can help their clients understand the importance of title insurance.

The Title Insurance Conundrum

Homebuyers often feel that the price of their new home keeps going up fees 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 paying a firm, like Velocity Title, to conduct title research and review records is vital to the home buying process. Buyers may say those title insurance fees are redundant, but that’s exactly 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 property 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 strong relationships in the industry. Title insurance delivers lasting protection for your client’s property. When an unforeseen issue arises, 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.

Velocity Title Moves You Forward

Velocity Title supports the real estate industry with a comprehensive line of title services that add value to each and every transaction. At Velocity Title, Our Personal Support Makes You Look Good Every Time! With a focus on the best CUSTOMER EXPERIENCE, Velocity Title incorporates leading title TECHNOLOGY and EXPERTISE into every transaction—enabling the final step in the home buying and investing process to be EASY, EFFICIENT and INFORMATIVE. For the perfect settlement experience every time, click here or contact us today!