What Does Title Insurance Do?

Preparing for closing can get a bit overwhelming for most people. After what is often a lengthy search, it’s exciting to find the perfect property. But once the buyer and seller agree on a price, the real work begins. Buyers have to arrange for financing, schedule home inspections, file legal documents, and make a lot of phone calls. There are also a number of fees that have to be paid up-front that aren’t part of closing costs. And then there’s the decision about whether or not to buy title insurance.

If you ever have any questions about title insurance, or closing real estate transactions, our team at First National Title Company is here to help. We have locations throughout Arkansas that are all staffed by the most experienced and customer-focused professionals in the business, and we’re ready to make you our next satisfied customer! We listen to our clients, and make sure that they understand every part of the process every step of the way! Here are a few of the questions that we hear most often:

Are there different types of title insurance? Yes. A lender’s policy is often required during financing, and it protects lenders and insures the priority of their lien against the property. An owner’s policy is always encouraged too, and protects the property owner from unexpected liens, judgments and clouds on title.

What are title clouds? Each time that a property changes hands, the owner has to be legally free to sell the property. This means that the title is free from assessments or liens due to delinquent taxes, HOA dues, and unpaid judgments/unpaid child support, and that there are no other individuals with a legitimate claim on the property. All clouds must be resolved prior to closing, and in the event that a title dispute happens, you’ll be protected from out-of-pocket legal fees.

How much does title insurance cost? Like most insurance policies, pricing depends on a number of factors. The price is largely based on the sale price of the property, and is a relatively modest investment.

To find out what you need to know about title insurance, as well as the real estate closing process, contact us online, or give us a call one of our 16 convenient locations listed below.