In this day and age, there are many opportunities out there for earning a large amount of money with Real Estate investments. On the flip side, there is also a lot of risk if you don’t do your due diligence. A Title Company can become a great tool to protect your hard earned money. Most people know very little as to what goes on behind the scenes at a Title Company and only speak to them once or twice during the sale/purchase and only meet the title agent at closing. It is very easy for those purchasing or selling a property to think this is one expense that they do not want to pay. Here are 3 very important reasons to show that in order to protect your investment, regardless of the type of property you are purchasing, and/or selling, why you must have a Title Company get involved in the transaction.
Prevent a Bad Investment
Even before you purchase and/or sell the property a Title Company can help you notice potential problems. Are there any liens on the property? Have there ever been any sinkhole issues? Or even as simple as determining if the seller the owner of the property. I have come across situations where people that are not the legal owners of the property sold the property to an unsuspecting buyer, and because they did not have title insurance they lost a lot of money and time. I have also encountered people who are in foreclosure and/or bankruptcy and they try to sell the property in violation of laws and agreements. A reputable Title Company can not only help you discover these issues but also resolve them so that you never have to deal with them again.
Disbursement of Funds and Liability Protection
Title Companies are much more than just a signing service. They provide Buyers and Lenders with commitments for clear title on their properties, and they are held accountable by various State and Federal entities to ensure proper distribution of funds. If there is a mortgage or lien on the Title Commitment the Title Company must pay it off or make sure it is satisfied unless approved in writing by all parties. If no Title Company is used to distribute funds you and your investment will not have the ability to ensure that you are getting clear title on the property you are buying.
Discounted Rates on Future Refinances and/or Sale of Property
When you purchase an Owner’s policy the value is not limited to a one-time limited use. You can use it to get future discounts on any refinance for as long as you own the property. Additionally, you may receive a discount for a limited time if you sell the property. In either case, you will be covered whether you own the property for one day or fifty years.
Erick Verdejo is the branch manager for Cosmopolitan Title Agency, LLC in Florida. He has over 14 years of experience in title, legal and mortgage lending fields. These positions and experience have given him a unique perspective in the current markets. He often works with investors in many ventures ranging from commercial, to rentals and rehabs. Feel free to contact him at 727-223-6368 or visit him at 36428 US Highway 19 North, Palm Harbor, FL 34684.
Learn More About Real Estate Investing
