Selling a property in New Orleans involves complex processes. Among the many things sellers need to prioritize is title insurance. It ensures smooth residential real estate closings.
Today, many people believe only buyers should be concerned about this insurance. While this is somehow true, it also makes sense for sellers to fully understand how it works. As a seller, you can instill buyer confidence when you have clear title documentation. Read on to discover why selling a property with title insurance is worth it.
What You Should Know About Title Insurance?
Title insurance is designed to give New Orleans homebuyers and lenders peace of mind. This document helps to protect against legal issues. It also protects buyers from claims that surface due to defects in a property’s title.
Before buying a property, a homebuyer needs to work with a reliable title provider. The company, such as Latitude Title Group, needs to do a title search first. This helps to check for:
- Claims
- Tax liens
- Unresolved issues
Bottom line: a title search helps to confirm a property’s legal ownership. It also confirms the property has no legal issues.
After confirmation, title insurance is provided to protect the buyer. But understand that title insurance doesn’t work like regular insurance. It doesn’t protect against future events. Instead, it keeps the buyer protected against claims from past events.
Will Title Insurance Protect You—as A Seller?
So far, we’ve mentioned that title insurance is specifically designed to protect homebuyers and lenders. If that’s so, then why should a real estate seller worry about it?
The simple answer is that title insurance also has many protection benefits for home sellers. Below are a few ways this insurance can protect you:
● Clearing title issues
One highlight of title insurance for sellers is that it clears title issues. As mentioned earlier, a title company needs to conduct a thorough search of the property before the sale. A title search gives sellers the assurance that the property has no unresolved legal claims. This gives the seller the peace of mind to sell the property.
● Avoiding post-sale battles
Like buyers, New Orleans property sellers also don’t like post-sale battles. This issue doesn’t only lead to financial strain. It also causes issues like—emotional stress and headaches for sellers.
Furthermore, disputes over undisclosed issues tend to delay final payouts. Besides, it may even ruin a seller’s reputation. In some cases, the issue may also lead to costly lawsuits.
Title insurance covers the cost of defending against legal claims. This prevents you from getting dragged into costly lawsuits after real estate closings.
● Smooth residential real estate closings
Having a clear and insured title makes the entire closing process smooth. It allows buyers to trust you. It gives them the peace of mind that their properties are free from legal problems. This makes the entire selling process smooth without delays.
What Does Title Insurance Require From You?
Like homebuyers, you also have major roles to play when it comes to selling property title insurance. These responsibilities include:
- First, you need to provide a clear title. The right title should be free from defects, encroachment, or claims that could lead to legal issues. To do this, it makes sense to partner with a reliable title insurance company. Latitude Title Group will help you perform a deep search to confirm a property is free of issues. This will give you the confidence to sell the property to your buyer with title insurance.
- In some cases, you may be required to pay the buyer’s owner’s title insurance. This depends on the agreement you have with the buyer upfront. The common thing is to allow the buyer to pay for the insurance. However, you can decide to pay if you want to close the deal faster. Besides, paying for the buyer’s owner’s title insurance will certainly make the deal more attractive to homebuyers.
- Lastly, it’s your responsibility to disclose known title issues. Failing to disclose known issues can lead to legal problems after closings. It can also ruin your reputation as a seller in New Orleans.
Partner with Latitude Title Group for your title services today! Visit the official website to better understand how title search and insurance can enhance your real estate deal.
