Even if you’ve bought more than one home in your life, you probably have a lot of questions. Your realtor and title agents work for you, and you should never be embarrassed to ask as many questions as you need. In fact, they welcome your questions so that you are more informed as you prepare for closing. Buying a new home is one of the most important milestones in your life, and you owe it to yourself to enter the process confidently, and with more information.
First National Title Company is Arkansas’ largest independent title company, with 22 convenient locations throughout Arkansas. Unlike many of our competitors, FNTC is not owned by either a real estate company or a financial institution, and we take a lot of pride in our commitment to providing legendary customer service to our clients. Here are the answers to some of the questions that we hear most frequently:
What is title insurance? There are two main categories of title insurance. A loan policy is a title insurance policy that protects the lender and confirms the lender’s collateral position on the property. The loan policy remains active until the mortgage is completely paid off. An owner’s policy protects the owner of the property, and is active as long as that person or persons own the home. This policy offers protection from most out-of-pocket legal expenses in the event of a property dispute due to title defects (aka title clouds).
How does title insurance protect me? Most properties have been bought and sold many times, and each time that the title is transferred, there are opportunities for mistakes. That’s why a title search is one of the most important first steps in a real estate transaction to confirm that there are no title clouds, and that the seller can legally sell the property. If the owner owes taxes, child support, HOA dues, or legal judgments, the property can’t be transferred until they’re resolved. Forgery and fraud are less common than typos and human error, but all of them can lead to delays come closing time.
How do I get title insurance? Once the real estate closing has been consummated, we will issue the final title policy within a short time thereafter, and you’ll be protected as long as you own the home.
If you have any questions, Contact us online, or at any of our 22 convenient Arkansas locations listed below!