Title Insurance Benefits You. Here’s How!

With real estate transactions, you need to be confident that the seller is the rightful owner of the property, and that there will be no surprises before or after closing. It’s important to perform the necessary research beforehand to confirm that there are no title defects (also known as “title clouds”) that could bring ownership into question before or after closing. Resolving title clouds can be an expensive and time-consuming process, and without title insurance, you could be personally responsible for exorbitant legal fees and other expenses.

First National Title Company (FNTC) is an Arkansas title company with 9 convenient locations to serve you throughout the State of Arkansas, and we recommend that you protect yourself with title insurance before you start any real estate transaction. Title insurance will cover legal fees and other expenses if there’s a title dispute, and will protect you from some of these common title clouds:

Unpaid taxes and other debts

If the seller is facing any liens or legal judgments due to unpaid taxes, child support, contractor’s fees, homeowner’s association dues, or other debts, closing can be delayed until those unmet financial obligations are satisfied.

Clerical Errors

It’s hard to believe that a simple typo could delay a real estate transaction, but sometimes it can. Other issues might include inaccurate property descriptions, undocumented problems with the property, or missing disclosures. These inaccuracies are rarely intentional, but they can be a big problem if they’re not discovered ahead of time.

Fraud

If the title history includes any forged signatures, or intentionally falsified documents, all sorts of problems can occur, even if the fraud occurred without the knowledge of the current seller.

Unknown Heirs

If a property owner died without leaving a will, you could face a lengthy battle in probate court with ex-spouses, children, or other relatives to resolve who has a legitimate claim to the property.

Title insurance is a small investment that can give you true peace of mind as you proceed with a real estate transaction, and is a great way to protect yourself in the event of a legal dispute. If you have any questions about title insurance, contact our experts at any of our Arkansas locations. Our staff has hundreds of years of experience with closing, title insurance, and escrow, and we’re here to help!