Benefits of Title Insurance
The title insurance services provided by Sutton Land Title Agency offer a wide range of protection to many different parties who have various interests in real estate transactions. The benefits of title insurance protect:
The purchaser faces possible serious financial loss — or could lose the right to own the property altogether – if a serious cloud on the title goes undetected. Owner’s title insurance offers protection against various hazards, including those even the most thorough search of the public records will not disclose, such as forgeries, missing heirs, or recording errors. And, owner’s title insurance will pay valid claims and the defense costs against attacks on, or challenges to, the title.
For a one-time premium that is modest in relation to the value of the property involved, the purchaser receives the protection of a title policy backed by the reserves and solvency of an insurance company. It will not only protect the insured owner, but also that person’s heirs for as long as they hold title to the property, and even after they sell by warranty deed.
Sellers want to be sure the title is marketable so they can sell their property. A title insurer facilitates the flow of the mortgage money by identifying title problems so they can be resolved whenever possible, and then by insuring against title risks. Title insurance encourages the expeditious completion of a transaction, thus the sellers receive their money in a timely fashion.
Lender’s title coverage provides a high degree of safety against loss of security as a result of a title problem. This protection remains in effect for as long as the mortgage remains unsatisfied.
Lender’s title insurance guarantees the lender a valid and enforceable lien and assures that no claimant other than those noted in the policy has a prior claim against the real estate. The policy assures that the purchaser-borrower has title to the property being pledged as security for the loan. The policy obligates the title insurer to pay for defending against any claim filed against the title that might supersede the lender’s lien.
Sutton Land Title Agency also provides lenders with in-depth expertise on a wide variety of title related matters to facilitate the mortgage loan process, and to resolve differences among the various parties in the transaction.
The Real Estate Broker
The security of title insurance greatly enhances the possibility for loan approval. The title insurance company and the real estate broker both seek to ensure that as many purchases as possible are closed to the satisfaction of all the parties in the transaction. Sutton Land Title Agency’s expert title professionals and attorneys – by fast, accurate verification of title or by swift resolution of a title problem – often make it possible to promptly complete a transaction that would have been seriously delayed or would have been altogether lost.
Title insurance enables the real estate attorney to offer his or her client substantially greater protection than what is attainable with a legal opinion alone. The attorney’s opinion is only limited to recorded matters and the client can only recover from the attorney if the attorney is found to be negligent. The protection of title insurance extends far beyond the risk that may be incurred by the purchasers as a result of an error or negligence by the person performing the search and examination.
By assuring priority of the first lien mortgage for the lender, title insurance facilitates prompt and needed disbursement of construction funds from the construction lender.
Sutton Land Title Agency’s expert title professionals and attorneys help the builder or developer establish ownership rights to assure local government that a project may proceed as planned. It assists the builder in identifying and evaluating building and use restrictions, easements, etc., and removing title problems that may arise. This normally expedites plat approval.