Showing posts from August, 2017

Homebuyers: Reviewing Your Title Commitment

During the home buying process, buyers typically have to go through the steps of getting a title insurance policy , whether it's the Owner's policy and the Loan policy, or just the Loan policy itself. One of those steps is to request for a title commitment to be completed and to review that report once the title insurance company sends it to you. But what exactly is a title commitment and what does it entail? This week, we'll go over in detail what it is and what information it provides to homebuyers and the title company. What is a Title Commitment? A title commitment is basically the title company’s promise to issue a title insurance policy for the property after closing. The title commitment contains the same terms, conditions, and exclusions that will be in the actual insurance policy. Almost every purchase and sale agreement contains language requiring the seller to provide the buyer with title insurance. At Arrowhead Title , we issue the title policy using forms

The Role of Escrow in a Real Estate Transaction

Whether you are the buyer, seller, lender or borrower, you want the assurance that no funds or property will change hands until ALL of the conditions are met in the purchase agreement. In order to ensure that both parties are protected during a transaction, typically an escrow fund is agreed upon to be held as collateral. This not only offers a safety net for the seller as a show of good faith from the buyer, but it also protects the buyer's interest in the purchase of the property as well. Now, we understand that not everyone understands the need for escrow services. So, this week, we'll be giving an in depth look at what escrow is and why it's an important part of the home buying process. What is Escrow? An escrow is a financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction. It helps make transactions more secure by keeping the payment in a secure escrow account which is only release

5 Questions to Ask Your Title Insurance Company

When you are preparing to purchase real estate, selecting the Lake of the Ozarks title company you want to work with during your transaction is an important step. Our staff is here to help you gather the information you need to make an informed decision when it comes to choosing the right title company. As you interview potential title companies, asking these questions can help you judge their experience and capability. 1. What is Title Insurance? Title insurance insures against financial loss caused by defects in title to real estate. Title insurance companies defend against lawsuits attacking the title, or in the case of a covered loss, reimburse the insured up to the policy limit. While it's not required for homeowners to carry title insurance, it is highly recommended. Lenders will require homeowners to carry a Loan Policy if the home is financed. 2. What Kind of Defects Does Title Insurance Protect From? It protects you against loss due to title defects, liens, or

Understanding Easements and How They Can Affect Your Property Rights

If you've recently purchased a home and didn't buy title insurance, you may run into some unforeseen issues in the future that you have no protection from. Title insurance is there to protect your interest in the event that something from the property's past comes to light that threatens your right of ownership to that property. There are several potential hazards that a new homeowner may face. This week, Arrowhead Title will be focusing on easements to better help you understand how they can affect your use and rights to a property. What is an Easement? An easement is a legal right to use another's land for a specific limited purpose. In other words, when someone is granted an easement, he is granted the legal right to use the property, but the legal title to the land itself remains with the owner of the land. Most commonly, easements are granted to utility companies to run power lines and cable lines. However, you may also grant an easement to your neighbor i

6 Common Title Insurance Misconceptions

Insurance such as car, life, health, etc., protects against potential future events and is paid for with monthly or annual premiums. A title insurance policy insures against events that occurred in the past of the real estate property and the people who owned it, for a one-time premium paid at the close of the escrow. There are a number of misconceptions about title insurance and  Arrowhead Title would like to clear up some of these common misconceptions. Misconception #1: Title insurance is expensive.  There are several factors that go into calculating premiums for a title insurance policy, and no two policies are the same. Unlike other types of insurance, title insurance has a one-time premium that is paid at the time of closing. This rate can vary, and your title insurance agency can provide you with an estimate of your costs before purchasing a policy so that you can make an educated decision when choosing a title insurance company. Keep in mind that while purchasing title