Why Use A Title Company?

Let’s face it, home buying is stressful. You save for years, you search for weeks (or even months), then you finally find the place you want for the price you want and then, someone mentions a title company. A title company?! After all this time and effort, it is fair to ask, why do I want to involve another party and why do I want this home sale to get any more expensive than it already is? Well, these are all good questions that deserve solid answers. Fortunately, the Champions Title Services' blog will provide you with informative response.

1. Why do I want to involve another party?

It is best for both the buyer and the seller to have a full-service reputable title company, like Champions Title Services, handle the title to make sure both parties are protected. Title companies have a legal obligation to ensure that the title is free and clear of any problems that may come back to hurt either party down the road.

2. Why do I want this home sale to get any more expensive than it already is?

The simple answer is this: peace-of-mind. Would you ever consider buying a home without getting a home inspection, first? Would you feel comfortable that the roof didn't leak or the foundation didn't have cracks without one? Most people would not feel safe about that. Just consider using a title company like getting a home inspection, but rather than check your outlets and your heating ducts, a title company inspects the history of the title. Here are a just a handful of the problems that can wrong if you buy a home without relying on a title company.

A. Lost heirs or interest(s) in the property: A previous owner or descendant of an owner may find a loophole to challenge your rights to the home you just bought. This can occur if any of the deeds in the previous chain of title are not acknowledged, executed or recorded correctly.

B. Unsatisfied, incorrectly satisfied or illegally satisfied mortgages, encumbrances, and liens in the back chain of title. Basically, this comes down to people committing fraud. For example, someone files a “satisfaction to a mortgage” in order to get new finances, and then run with the money. If you buy that property, you now will have to pay for the mortgage, too.

C.  Municipal liens: Not all liens are public record. Therefore, if you buy a home at a foreclosure auction without the safety of title insurance, then you will end up paying any municipal liens that are on that home.

D. Boundary line disputes, sinkhole properties: Sinkholes may be the most important reason to get use a title company in the Pasco, Hernando, and Northern Pinellas areas. You want to be sure no “notice of sinkholes” documents have been filed against the property you are considering buy.

E. Judgments: Credit card debt, child support, alimony, and federal tax liens are just a few of the many judgments that could be levied against the home you are trying to purchase. Without title insurance, you may have to pay these judgments before you can own your new home.

Even with all the reasons given above, some people will still risk forgoing the title company, and leaving themselves and their families unprotected. If you want the safety and peace-of-mind that comes with using a reputable title company, then contact Champions Title Services today. Our email is info@championstitleservices.com, our contact page is here, and our phone number is (727) 264-2394.