Brogdon | Horsman is excited to announce a brand-new Q&A series! Each month, we will be interviewing local professionals about different aspects of Real Estate transactions. We hope our Q&A’s will be both entertaining and informative, and we can’t wait to introduce to you some of the greatest people in our industry.
For August, we chatted with Web Raulston, Vice President of Jones & Raulston Title Insurance Agency. Web is a licensed title agent in both Tennessee and Georgia, and has personally closed hundreds of transactions ranging from simple to complex, residential to commercial and from single state to multistate. We think Web is a wonderful friend and colleague, and a valuable asset to our Real Estate community!
Q: What is title insurance?
“Title insurance protects your financial investment in your home from any unexpected issues regarding ownership. The process entails legal research of your property for: Unresolved financial issues, such as tax liens; Individuals who may lay claims to the property, such as undisclosed heirs; Clerical errors on the deed and other property records; Omissions that suggest fraud, et al. Title insurance essentially ensures that the transfer of property from the seller to the buyer is legal and error-free.”
Q: Why do we need title insurance?
“Title insurance has a number of benefits for the buyer. With full coverage, individuals can resolve any land ownership issues without out of pocket expenses. Legal representation, litigation, correction of property documents, and notary fees are included in most policies. In Tennessee, most properties have a long history of ownership. This significantly increases the likelihood of unresolved ownership issues. With complete coverage, you can avoid any surprises and maintain the peace of mind that your home is your own.”
Q: How does title insurance work?
“The process of title insurance is twofold. First, your agency will research your property. This search basically looks at the risks of your investment. Agents will research deed history, legal transference of property, inheritance of property, tax liens, outstanding home loan balances from previous owners, judgments, easements, and any claims to property features, such as waterways. If the title insurance agents discover any unresolved ownership details in the property’s history, they will facilitate legal resolution so you can purchase your home with complete confidence. From correcting misspellings in the deeds to clarifying property boundaries, your title insurance agent is responsible for catching the minor details that can affect the legality of your purchase.”
Q: How is cost determined?
“Both lender’s and owner’s title insurance fees are determined by the Tennessee Commissioner of Insurance. Rates vary by county and home value. Lender’s insurance rates depend on the loan amount. In Chattanooga, it is customary for the buyer to pay the lender’s title insurance fee and the seller to pay the owner’s title insurance fee. However, every home purchase is different, so it is important to find a lending agency to guide you through the rate shopping process.”
Title insurance is crucial to having peace of mind that the title to your new home is yours, free and clear. And with great folks like Web Raulston on your team, you can’t go wrong!