The 5 Most Common Title Insurance Issues in North Carolina

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When it comes to buying real estate—whether it’s residential or commercial—investigating the property’s title is paramount to a successful transaction. Unbeknownst to many new homebuyers out there, a property’s title may have a number of different issues with it that could slow down, or event prevent, a home purchase.

That’s why we can’t stress enough the importance of protecting yourself and your investment with a thorough title insurance policy. As a leading North Carolina title insurance agency, we want to make sure you have everything you need to make a smart real estate decision today.

So, here are five of the most common issues with property titles you should be on the lookout for!

Liens

Oftentimes, a property owner will agree to having a lien placed on their home when they cannot pay a bill right away. We see this frequently with contractors, who will place a lien on a home before beginning their work to ensure that they are paid.

If a previous owner was not meticulous about their bills and records, as well as paying people on time, they may have liens on their property they weren’t aware of. Liens such as this will prevent you from purchasing the home—delaying your home purchase until the issue can be financially resolved.

Public Errors

Nobody is perfect, which is why we sometimes see property title issues that are a result of clerical or filing errors.

These errors can then put a wrench in your real estate transaction, causing undue financial burdens to fix them before you can actually purchase your home.

Forgeries

While public errors are a result of human mistakes, forgery is another issue entirely. It isn’t uncommon to find property titles that have been forged in some areas, or completely fabricated altogether.

This issue can obscure who the property actually belongs to, which can lead to huge problems with your homeownership.

Illegal or Incorrect Deeds

As with forgeries or fabricated deeds, some property titles are made illegally.

These “fake” titles can cause a lot of issues, and are often hard to detect. Titles are illegal when they are made by an unofficial or unauthorized chain of command. This includes an undocumented immigrant, a person not of sound mind, a minor person, or someone claiming to be single who is actually married.

Missing Heirs

If a property owner passes away and the will cannot be found, another relative may elect to sell that property. However, issues may arise if an unknown heir comes forward to claim ownership of the property.

An issue such as this could come up any time, even years after you purchase the property.

Protect Your Investment with Title Insurance

Any one of these issues could come up at any point during your homeownership! A surefire way to protect your investment from any hidden title issues is taking out a title insurance policy.

Reach out to Tryon Title today to learn more about your title insurance options in North Carolina.

Your North Carolina Real Estate Closing Checklist

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Finally, after weeks and weeks of hard work, it’s time for the best part of the real estate transaction: closing day! Without proper planning, it’s easy for closing day to go awry in the world of real estate—especially when it comes to the home’s title. That’s why we’ve come up with this North Carolina real estate closing checklist.

It includes everything you should do as a real estate agent to ensure a stress-free and successful closing day. Have specific questions about working with a title insurance agency prior to closing day? Don’t hesitate to give us a call.

In the meantime, let’s get to it!

Step 1: Verify that the Sales Contract is Correct

This sounds simple enough, but when done incorrectly it can yield potentially catastrophic results! You’ll want to ensure that the sales contract is correct, and that includes:

  • Making sure the person selling the property is the “record title holder”
  • Double checking that all property is represented in the contract

Oftentimes, commercial properties may actually include more than one piece of land so be sure that both the seller and buyer are on the same page and everything is properly accounted for in the contract.

Step 2: Ensure the Contract Includes a “Due Diligency” Clause

This is a huge part of selling—especially when it comes to commercial properties. If there are any contingencies, make sure that all parties are aware and properly informed about them.

Time and time again, we see even the most carefully planned closings fall apart as a result of contingency deadlines not being met!

Step 3: Keep Track of the Buyer

If the buyer is borrowing from a lender, you’ll want to check in with them to make sure they’re following through on all of their requirements. Lenders typically have a set of requirements for borrowers, and when buyers don’t adhere to them it is impossible to get the transaction approved before closing.

Periodically throughout the real estate transaction, contact the buyer’s representative to check that everything is going smoothly! Otherwise, it will be harder for the lender to get the title insurance underwritten and approved.

Step 4: Stay Ahead of Any Title Issues

If any issues with the property’s title arise during the transaction process, deal with them immediately. Work with the seller, the title agency, and the buyer representative to take care of any issues quickly.

Time is of the essence in any real estate transaction, so don’t get bogged down by procrastinating on important title issues!

Step 5: Keep Your Client Informed

Even as an experienced real estate agent, you know that the closing process can be confusing. That’s why you should do everything in your power to educate your client on the closing process.

When your client  knows exactly what to do during the closing, the entire process will go that much smoother!

Step 6: Thoroughly Review Closing Documents with Your Client

And, additionally, make sure that all parties are on the same page about closing! Coordinate all logistics, including closing date and time, and confirm it with the buyer, seller, and their representatives.

Step 7: Work with a Professional Title Insurance Agency

As a real estate agent, you’ll want to work closely with a title insurance agency to make sure the policy is effective and ready on time.

If you have any questions about the role title insurance plays in your real estate transaction, please don’t hesitate to give Tryon Title a call!

 

How the Right Title Insurance Agency Makes All the Difference

A woman wearing a bow tie pointing to a graph on a computer screen.

If you work in the real estate industry, whether you’re dealing with commercial or residential properties, you probably know how valuable an effective title insurance policy can be. That’s why it’s so important to work with a professional title insurance agency in North Carolina.

The right title insurance agency will make all the difference in executing a smooth and successful real estate transaction. But, if you’re new to real estate, you might be wondering what the difference is between a title insurance agency and a title insurance company.

We’re here to set the record straight. Here’s everything a title insurance agency does, and why you should work with one for your real estate transactions.

An Agency Ensures the Home Has a Clean Title

As you know, title insurance protects the new home owner in case any issues come up with the property’s title. While all mortgage lenders in North Carolina require title insurance, homebuyers have the option to purchase it for themselves. As such, there are two kinds of title insurance: lender’s and owner’s.

To obtain title insurance, you must work with a title insurance company. The title insurance agency represents the company during the real estate transaction.

However, the most important and beneficial aspect of the agency is the research they do into the property—and its title. The title insurance agency does a deep dive on the property’s title throughout history. By doing so, they can guarantee that the property is a worthwhile investment.

What Does the Agency Look Into?

Basically, the title insurance agency makes sure that there aren’t any outstanding issues preventing the home from being sold. They look for ownership issues, liens, or loans that must be taken care of to ensure the home’s title is clean and ready to be transferred.

Additionally, they look for any legal restrictions on the property that might prevent a sale—or end up costing the new owner money.

After completing their research into the property, the title insurance agency will issue a letter detailing their findings on the property’s title. If any issues are present, there will be time for the property’s current owner to resolve them before officially selling the property.

So Who Issues the Title Insurance Policy?

While the title insurance company actually issues the policy, the agency is responsible for doing an initial underwriting of the policy. This is highly valuable to home buyers because the agency takes a completely objective look at the title history before writing the policy.

In addition, the title insurance agency takes on the risk if the title ends up being faulty.

Looking for a More Streamlined Real Estate Transaction?

If you’re still on the hunt for the perfect title insurance agency in North Carolina, consider working with Tryon Title. We have many years of experience serving clients in all of North Carolina’s 100 counties, and have valuable insight into how this real estate market works.

Plus, our underwriters and title insurance experts offer quick turnaround times and world-class customer service. If you’re interested in learning more about working with a title insurance agency, please reach out to us today.