Title Insurance Policies-Major Items Buyers Need to Know

Avoiding Risk with Title InsuranceIn the last few months, we have had some transactions in which the buyer has waved purchasing the Owners Title Insurance Policy. That is their right to do so as “technically” it is optional. What many buyers don’t take the time to learn are the many upsides and protections Title Insurance Policies provide. Not purchasing a policy on your largest asset can have lasting affects even after you sell the home.

We ran into a specific situation last week where the buyer didn’t purchase the Owners Title Insurance Policy, AND they also forgot to order their survey. The Realtor wanted to order a survey after closing, then inquired what would happen if there was a survey issue after the fact? I told her that the “Survey Exception” is part of the protections laid out in the Owners Policy…which her clients declined. She freaked out. Here are 3 major items that are helpful to buyers regarding Title Insurance Polices.

The Scary Issue Title Companies are Seeing with TRID Closings

TRID ClosingsWe are now 6+ weeks into the new TRID/CFPB regulations, and Stewart Title is starting to have a steady stream of TRID closings.  Many of the TRID closings have gone smooth and several still within the 30-35 day window lenders usually need.  Those are the good things.  The not so good things, are loan officers not fully educated on the process, issues with the lender completing the Closing Disclosure (CD) and the extra work hours that are being spent on the files due to this. Many Realtors are also not up to date on the procedures and wondering why their closings might possibly be delayed. There is also another issue we are starting to see with TRID closings, which we hope does not become a pattern.  This is something that is being seen not only by us, but other title competitors in the local Northern Virginia/Washington DC market.