Answering the 12 Most Common Real Estate Questions
The 12 Most Common Real Estate Questions. There are a series of questions that are usually asked or at least should be asked.
-What does title insurance actually insure against?
-Why is title insurance necessary?
-How does title insurance differ from homeowner’s insurance, casualty or other types of insurance?
-Why does a homeowner need a title insurance policy and a lender need its own policy?
-Who pays for title insurance?
How soon can I agree to to the purchase of a property?
It will always depend on the conditions of the process, the title of the property, the financing, the inspection, etc. With all the above being in optimum condition, it is usually as fast as 30 days, our goal is to complete the entire process in 21 days.
How are the schools in this neighborhood?
When families are composed of small children or teenagers that attend schools, it is very common that a basic element in the decision making process is to acquire a property in the proximity of educational centers. Once the younger members of the family become adults, the decision-making will move towards other areas of interest such as accessibility and value of reselling the property.
When is the best time to buy?
Now is the best time to buy, what you need, is to find the motivation that leads you to make a decision. Depending on what stage of your life you are in, you will always have the opportunity to evaluate the possibility of buying a new property, not just to live in it, but as an investment or to enjoy a second vacation home.
I am not sure if I am ready to purchase a home right now.
The only possible way to know if you are ready to purchase a property is by evaluating your economic situation, saving and maintaining your credit score, there are many ways that could adapt to your needs and help you achieve your dream.
I am pre-approved, however, I have several doubts about the next step.
Once the Albert García Team has approved you; we have the tools and resources to help you throughout the whole process. We will be working with you in this important time of your life. If you are not pre-approved by the bank, we can pre-approve you in our offices.
What is title insurance?
Title Insurance is known to the insurance policy that protects against losses generated by the condition of the title of the land (land, residence, building) that was an acquired product of a real estate transaction. Title insurance is proof that the property you claim is yours and that there is no lien or claim pending on it.
What does title insurance actually insure against?
Title insurance is a guarantee to you, and your lender, that you’re protected against any losses from defects in the title (errors or overlapping claims) thats occurred in the public records when you bought or refinanced.
Possible defects in title might include:- Errors or omissions in deeds
- Mistakes in examining title records
- Forgery
- Undisclosed and missing heirs
- Liens and Judgments
- Access to property
What exactly is covered by title insurance?
There are several types of policies, but these are some of the basic risks covered:
- Forgery and impersonation;
- Lack of competency, capacity or legal authority of a party;
- Deed not joined in by a necessary party (co-owner, heir, spouse, corporate officer, or business partner);
- Undisclosed (but recorded) prior mortgage or lien;
- Undisclosed (but recorded) easement or use restriction;
- Erroneous or inadequate legal descriptions;
- Lack of a right of access; and
- Deed not properly recorded.
- An extended coverage policy may be requested to protect against such additional defects as:
- Off-record matters, such as claims for adverse possession or prescriptive easement;
- Deed to land with buildings encroaching on land of another;
- Incorrect survey;
- Silent (off-record) liens (such as mechanics’ or estate tax liens); and
- Pre-existing violations of subdivision laws, zoning ordinances or CC&R’s.
- Subject to availability in your locale, your extended Policy covers all of the risks listed above, plus:
- Post-policy forgery;
- Forced removal of improvements due to lack of building permit (subject to deductible);
- Post-policy construction of improvements by a neighbor onto insured land; and
- Location and dimensions of insured land (survey not required).
How does title insurance differ from homeowner’s insurance, casualty or other types of insurance?
Title insurance is a very specific kind of guarantee. It’s different than homeowner’s insurance, which covers against general claims and losses due to natural disasters, home malfunctions, fire or lightning, theft, vandalism, and personal liability claims brought against you by others. Homeowner’s, casualty, and other types of insurance also have ongoing premium payments and can be renewed/cancelled/modified, etc., while title insurance is in force as long as you own the house (and the loan), with all of the work to identify and eliminate risk with the property occurring before you assume legal ownership.
Why does a homeowner need a title insurance policy and a lender need its own policy?
The owner and the lender need their own title insurance policies in any real estate transaction or issuance of a mortgage loan. Since there are two separate policies, the interests of both the lender and the owner are protected against title defects.
What would title insurance do for a homeowner if there were a problem after the sale?
Most problems are identified and resolved before the transaction every closes (as title insurance is supposed to do), but in rare circumstances there are issues that arise. A homeowner’s title insurance would cover the legal cost of defending their interest in the property and resolving the matter. It would also cover indemnification against losses caused by any claims. Remember that anyone can make a claim against title or take a case to court – whether or not it’s right or justified – so it’s essential to be insured.
