Real estate is a very important purchase and one that should be done with caution. By ensuring that you have the right documentation in place, you can help to avoid many of the issues that could come up during your closing. Here’s what you need to know about title insurance and other steps you can take to avoid potential problems during your next real estate closing.
The Importance of Documentation in a Real Estate Closing
One of the primary issues that can arise if you don’t have the proper documentation in place is title issues. This includes issues such as a former owner who doesn’t have the right to sell the property, or outstanding debts on the property. When this happens, it can be time-consuming and expensive to get these issues cleared up – if you don’t catch them before the closing. Often, clients have gone to a notary and received a deed, but lack the proper documentation for it to be a valid conveyance. This can be a serious problem when closing on a property. Even if this isn’t the case, it’s important to make sure that you’re getting a full and accurate title every time you buy a property.
The first thing you’ll want to do is have a thorough title search performed before you close on the property. This will give you a clear picture of who is behind the property and what their rights and limitations are, as well as any potential issues with the title itself. These could include outstanding liens, unpaid taxes, or any other issues related to ownership. While these types of issues are often caught before the closing, they can be extremely problematic if they go unresolved and you end up being responsible for resolving them.
What is Title Insurance?
Title insurance is a type of insurance that protects the buyer and lender in the event that there are any problems with the title of the property. It is important to have this insurance in place because it can help to protect you from many of the legal issues that can arise throughout the closing process.
Title insurance is not cheap, but it’s an important step that you should take when purchasing a property. When you’re looking into whether title insurance is right for you and your new property, you want to keep in mind what the policy does and what it does not do. A good title insurance policy will have a thorough explanation of exactly what is covered and not covered so that you know exactly what to expect. You should also talk with an experienced attorney who can help you to determine what kind of coverage you will need for your specific situation.
Albright & Lumpkin, PC can assist you through the closing process. Our experience allows us to provide a fast and simple closing so you don’t have to worry about title issues and get to enjoying your new property sooner than later. Contact us at (713) 455-6661 or through our website today to get started.
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