Title insurance is sometimes a requirement mortgage lenders have and as a buyer you simply need to get the process started. You should learn a little bit more about what takes place when you get title insurance in Gonzales County.

The Process of Buying Title Insurance in Gonzales County

The amount of information received  when buying a new house can be very overwhelming, and can lead first-time home buyers to have a few slip-ups along the way. Somewhere in the process of buying a new house, you'll hear about title insurance and wonder if it's really necessary.  We'd say it is, but you should decide for yourself. To help you learn more about title insurance, Burchard Abstract Company has prepared this post to explain the process.

 The Role of the Title Insurance Company

The title insurance company will work the mortgage lender, gather the lender’s documents, conduct a record search and interpretation, collect and deliver all the funds involved, and conduct a formal closing.  All you need to do is request your title insurance policy and let the title insurance company take care of everything else. If you will be paying in cash without a lender, you can probably skip getting title insurance. It's better if you didn't and that you protect your investment regardless of your  chosen payment method.

Request Insurance

The first thing you need to do to get title insurance is to request it. As a buyer you can do it directly or you can ask an attorney or your real estate agent to do it for you. A title insurance company such as Burchard Abstract Company will provide a report with basic information, including how the title is presently on the record. You need to do this right after your offer has been accepted because the process needs to be completed before the closing.

Record Search and Title Examination

Once you get the basic title information, the title researcher will perform an extensive search of the property’s historical records. The search will find any mortgages, liens, wills, and other information. If there are any problems with the current deed to the property, they will find them. It’s not that uncommon to find problems in the title search. In fact, they can arise for many reasons: illegal deeds, missing heirs, unknown liens, encroachments, even man-made errors in public records. Any existing title problem needs to be fixed before closing. Talk to Burchard Abstract if you're interested in learning more about title problems and start your insurance process in Gonzales County. All you need to do is call them at (830) 672-8651 to get started.

Issuance of Binder

The title insurance company issues a binder, which is a document that stipulates the coverage provided by the company. It specified the amount of coverage, the protected parties, the policy terms and conditions, and the limitations of the coverage. The “limitations” section will detail any clouds on the title that could impact the sale.

Exposing Hidden Issues

Clouds are issues on the title that have not been revealed. They can appear because of a recent occurrence under the present owner, unpaid taxes, inaccurate services, encumbrances, foreclosure attempts, among other issues. As soon as you purchase the house any title issue left behind by the previous owner becomes yours.

Removing the Clouds

Once the binder exposes the clouds, an investigation to find their origin begins in order to find a solution. Sometimes, clouds can be resolved in a matter of hours. However, other times the process can take weeks or even months if there’s the need for legal action. The reason why title insurance is necessary is because you don’t want to end up affected by someone else’s issues. Removing someone else’s clouds can be costly. Once the clouds are lifted (if possible) the buyer can decide if they will proceed with the buying process or stop right there.

Premium Payment

One of the many benefits of title insurance is that issuance of a title insurance policy requires a single premium payment. The premium will be part of the closing costs, along with other expenses such as legal fees and taxes. The buyer must pay for the premium, and in return they will receive lifetime title protection. Once the payment has been made, the mortgage lender gets a copy of the title insurance policy and another copy goes to the property’s records. That’s it! After this payment you’ll be able to enjoy your home without worrying about future ownership disputes.

Start Your Title Insurance Process in Gonzales County

After your offer has been accepted you need to complete further steps to protect your new home. Getting title insurance is one of those steps, and now that you know a little bit more about the process you shouldn't take too long before purchasing your policy. Burchard Abstract Company are title insurance experts in Gonzales County, just call them at (830) 672-8651 to get started.