As a real estate agent, you understand the excitement and anxiety your clients feel when they purchase a home.
Due to the cost of these investments, homebuyers might not see the value of purchasing title insurance. Your job is to explain that this tool is one of the best ways they can protect their investments.
Explain the different policies
Your real estate clients may not understand the different types of title insurance. Although banks of other financial institutions generally require lender’s title insurance when your clients borrow for their home purchase, these policies only protect the lenders.
Only owner’s title insurance will repay your client’s financial outlays. However, homebuyers can negotiate that the seller pays this protection. In addition, while the lender typically chooses the lender’s title insurance company, buyers can shop around for their owner’s policy.
Illustrate the risks of not purchasing insurance
Your clients may believe they do not need any title insurance if they pay in cash or secure financing with a nontraditional lender. Although this might be the case, they will not have protection from the risks of a bad title. Therefore, discuss the risks if homebuyers do not purchase insurance. For example, they can lose all or part of the property or have to pay debts that are not theirs. In addition, fighting different claims, such as fraud, bankruptcy, missing heir and easement claims, may result in additional legal fees.
Protect your clients by giving them the information they need to make an informed decision about their title insurance.