Many people, even professionals in the real estate industry, think of title insurance as a commodity. Because the government sets title insurance rates, policy premiums even cost the same amount, although ancillary fees may vary from company to company.
But there are significant differences that professionals should know about title insurance to give their clients the best advice.
One Fee, Ongoing Protection
As professionals know, a real estate transaction can involve two title policies: one, which most lenders require, is purchased by the buyer but only protects the lender; a second policy to protect the buyer is optional (but highly recommended).
Although standard policies purchased by the buyer for their own benefit carry a one-time fee paid at closing, protection lasts for as long as the buyer owns the home. One option that many buyers don’t know about is a low-cost rider that boosts protection as the home appreciates in value. We highly recommend adding this rider. Lenders may require additional riders on the lender’s version of the policy.
Due Diligence and Questions to Ask
Any professional who recommends title insurance to clients should consider three factors before making a recommendation:
- Ensure that the title company has experience with similar transactions in the same municipality and understands how closings are managed in that area
- Investigate the track record of the title company and its underwriters
- Understand what additional value the title company adds to the process beyond issuing the policy and disbursing funds at and after closing
The Cornerstone Value-Add
Cornerstone goes well beyond what your clients expect from day one, starting with a free tool to estimate closing costs based on a home’s location.
With the experience gained from more than 16,000 transactions, Cornerstone can be an invaluable resource for you and your clients. We can connect you and your clients with other real estate professionals who meet the same high standards you do for customer service, expertise, and integrity. Those professionals can also be excellent referral sources.
There’s a reason why Cornerstone has a five-star rating from Google reviews. And because title insurance rates are set by the government, when your clients use Cornerstone, they don’t pay more—but they certainly get more. The earlier your clients are in the buying process, the more we can help. If the American Dream of homeownership is important to your clients, please let us help you make their dream a reality.
