What does a tittle insurance company do?

http://www.mtgprofessor.com/a%20-%20title%20insurance/questions%20about%...

This link may answer some of your questions.

they also give you an insurance policy guarantee that there are no liens against the property.

Here they also handle the closing transaction of the real estate purchase (like an escrow company).
The title insurance they provide is through the date of the closing. When you go to sell the property, at that time the insurance would be updated (could be at a reduced rate if you have the proof of the previous policy) for the new buyer. You pay by percentage of the dollar amount of the purchase.

Hello,

Does the title insurance company also tell you the current value of the property in question?

This is probably a dumb question, I know, but I am very new to this. If I am going to assign a contract instead of taking possession myself, do I still need to purchase title insurance. This is a great forum, thanks for any help.

I do not believe you need to go to title company if all you are doing is locking the home up. The buyer would prob. pay for one to make sure there were no liens, etc...

Jeremy

Hi CMB,
Congratlations on joining the greatest opportunity by far! No question is dumb! It's just a matter of having clear understanding. When your doing an assignment you don't need insurance. Because you are not actually taking possesion of the property. You are assigning your interest to the end buyer. So therefore the person who takes possesion needs the insurance. Continued success to you....Lubertha

Ok, I know when you buy a home the title company will do a title search, but doesn't that clear the title? Then why would you need to buy title insurance? This question came up because my sister is buying a home on the east coast where they use lawyers for all real estate transactions. (Here is AZ the title company does it all) Her lawyer asked her if she wanted to buy title insurance? Wouldn't a search find out everything? ? ? I don't get it. When I bought my house (yes, my first REO to flip!) no one asked me if I wanted title insurance. Maybe I'm confused...

Not in all cases will a title search find all title issues. In fact, it depends on how far back of a title search the title company does as to whether they will find an issue or not. For this reason, we should obtain title insurance on all properties we buy to make sure we are protected as well as that we can resell the property at a later date. Without title insurance, we will have a hard time selling the property, because the buyers lender will be leery as well as the buyers title insurance company. It depends on the area as to the protocol that is followed to close on a property. In many of the east coast states, they will have different parties taking care of different aspects of the process,instead of one place handling it all like Arizona.

You may already have your question answered, so I may be repeating.

The title insurance company provides insurance on the title (or deed). Basically what that means is if anyone ever disputes the ownership of the property they will do the legal work to clear the title.

Typically you do not need this unless you are actually buying the property.

Good luck, and thanks for posting your question. I am sure there are other with the same question who didn't want to ask.

Title Insurance companies play a vital part in the real estate business. In most states they not only provide insurance on the title of the property you purchase, but the act as an escrow agency as a disinterested third party. They basically receive the documentation from the seller stating that when they are in the position to pay them the money stated in the purchase contract, the escrow agent is allowed to record the conveyance deed. Conversely, the buyer gives the cash into escrow with the instructions that the escrow company can give the cash to the seller once the escrow company records the deed. It facilitates the transaction between the parties.

The lenders will ask for a policy insuring them that that are in first position. If something happens and an unknown claim, or unknown lien, materializes, the title insurance companies either get's it cleared, or pay you for damages. Every once in a while you hear of a horror story where a garage was built a few feet on the neighbor's property. If one has title insurance and this happens, the title insurance has to make it right to the buyer/owner and the lender.

Thankyou everyone for the questions and the answers.One could
learn a boatload of knowledge from this site! Silverhound