Whether you’re a buyer, seller, or realtor, closing a real estate transaction is a thrill. Title insurance agents play a critical, and often underappreciated role in the closing process, providing support and protection for all parties involved. Below are just a few ways that the title experts at Vanguard Title optimize real estate transactions.
Preventing Claims and Protecting Homeowner Property Rights
The essential role of the title insurance agent is to ensure that the property is transferred from the homeowner to the homebuyer free of any legal obligations, liens, or backed payments. Title insurance protects both parties, ensuring the original owner’s investment goes through and setting the buyer’s mind at ease. Though the agents and/or attorneys will retain about 80 percent of the title insurance premium, it is a one-time fee that protects a buyer’s investment for as long as the property is held. Fees vary state by state, but they commonly cover the initial title search, the correction of any errors, the creation of the individual policy, and the closing cost.
Safe and Efficient Transfers
Homebuyers want to make sure that the keys to their new property do not come with any outstanding legal obligations. Detailed public records systems allow agents to examine the chain of ownership and any documents associated with the property and discover any potential issues before the buyer agrees to close. These issues could include previous owners’ delinquent taxes, liens from unpaid child support or contractor fees, or even fraud charges — all of which are major red alerts to potential buyers.
Reducing Costs through Risk Management
Because title insurance reduces the risk of homeownership, many mortgage lenders will happily provide lower rates once the evaluation is complete and the insurance is purchased. This discount will add up over the course of the mortgage’s repayment, saving the new homeowner money. According to the Consumer Financial Protection Bureau, a .5% interest rate reduction on a $200,000 30-year fixed-rate loan will save the borrower roughly $60 per month — $3,500 over the first five years alone.
Working with Vanguard Title
Vanguard Title works with realtors, lenders, developers, and contractors across Michigan to simplify the closing process. We serve as a single point of contact for everyone involved in the transaction, mitigating the risk of noncompliance for lenders and saving the consumer time and money. For more information on Vanguard Title’s comprehensive suite of title services, visit our homepage.