Tuesday 9 January 2024

Title Insurance and Protecting Home Buyers

Posted by at 9:16 AM

We thoroughly examine the title back 60 years or more, research tax records, liens, judgments and municipal charges, and clear any issues on title prior to issuing a title-insurance policy.  Of course claims would be lower than other insurance industries, since title is cleaned up before the closing.

     Our industry is responsible for so much more than issuing title insurance.  We are required to report property sales to the Internal Revenue Service as well as to state comptroller offices, and collect millions of dollars in unpaid tax liens, judgments, past-due child support and condominium dues.  We pay water bills, credit cards and even car loans.  We must comply with tax collection on foreign sellers and with detailed reporting requirements through the Financial Crimes Enforcement Network.  Failure to comply subjects us to fines and penalties.

     We agree that housing is unaffordable for far too many.  Changing that will require our leaders to make difficult decisions.  Meanwhile, all should be afforded protection of their home titles.  A title-insurance policy is the best consumer protection in the home-buying process.