What is Title Insurance? | Title Insurance Cost | How Much is Title Insurance?

What is Title Insurance? | Title Insurance Cost | How Much is Title Insurance?

How’s it going everyone? Matt Leighton and welcome back to another video. This one’s a little bit different today we have a special guest with me. Joe, how’s it going? out and filter it could be here so today’s video is gonna be about title insurance the exciting world of title insurance i know that’s why you clicked on the video and we’re going to get into it just here a second Joe first tell me a little bit about who you are who you work for what you do ok my name is joe moreno I’m managing attorney here at Universal title in arlington office we are a settlement company we do residential settlements for Virginia Maryland in DC we covered basically the entire gamut of you know from contract ratification all the way down to the the day of settlement we walk you through the entire process Joe is just about the best-dressed attorney in arlington so i had to bring my anything here it’s always rocking that 3pcs ok enough about Joe and his stylish looks so we’re going to get right into it tell the people what is title insurance because when I get that question from a buyer i can tell them what title insurance is but a lot of times I’ll just give them the like the webster definition of it and then if they ask any sort of follow-up question I am completely out of my element which maybe I should honestly know a little bit more but the last thing I want to have happen is to have my client then reach out to you and say well matt said this about title insurance so tell tell them what it what it is sure no problem so title insurance at it’s very basis basically just about peace of mind for the buyer it is protection against any type of title defects that may occur that were previously unknown so really running the gamut if there was anything that should have been recorded with land records that wasn’t if anyone was defrauded throughout the chain of title in the history before you purchase a property if there was any loan or line of credit that maybe wasn’t released properly all that stuff creates what’s called a cloud on title which means that you don’t have marketable uninsurable title which is a problem part of you know the process the contract the contractual process rather is that you get marketable insurable title and every once in awhile obviously there’s an issue that people don’t foresee ok and that’s what I’ll insurance is there to protect basically it keeps you from having to come out of pocket to pay for attorneys to pay for court costs pay for anything to defend the property that you just purchased ok obviously everything everything here that is done is done by people ok people sometimes make mistakes sometimes in the change things don’t happen as they’re supposed to it and that’s not the buyers fault right okay and so I’ll insurance is designed to make sure that there are no problems that caused them to lose money or to worst-case scenario lose their own property after a person could pick so its protection leading up to the sale things that have happened in the past that there’s no real way of knowing it could be like a mechanic’s lien from something that just happened or it could be 20 years ago where something happened and we just don’t know all right right exactly there are actually two types of owners title piles are title insurance the standard which is just looking backwards ok so just anything that happened pre-settlement so as I mentioned if there was a deed of gift if someone sold the property to you but before they did that they gave half of the property to their cousin but they never recorded in land records their cousin finds out that the property gets old and now all of a sudden they want their piece of the property ok well there’s no legal record of them ever having an interest in the property they don’t have any ownership as far as the county’s concerned as far as the law is concerned but they have this piece of paper and they’re going to see you based on ok title insurance means that you don’t have to incur any of those costs ok and the standard title insurance just looks backwards from the date of seven anything that happened prior to settlement now there’s also an option for what’s called the enhanced title policy that covers everything that looks backwards but it also looks forward for you and so if there are any issues it does cover some things that happened after the fact like these mechanics liens for example if there was any worked on the property one of the things that that a lot of times will happen is that as part of the home inspection ok work will be will be agreed to be done ok if a contractor doesn’t get paid or contractor doesn’t pay their subcontractor which nobody might know except for the contractor right they could put a lien on the property that could attach after the date of settlement ok that’s covered with enhanced policy also there any permits or anything that weren’t properly pulled counties don’t really proactively look for that ok so I could have my my kitchen redone by my cousin if he doesn’t pull any permits the county doesn’t care until you decide to redo it after you purchased it for me at that point they’re going to go and do their preliminary inspections and said listen if there’s a problem there should have been some permits pull and that’s going to be your responsibility that’s also something that title insurance covers as well got it so you all usually recommend premium over the standard just for that reason because if a contract contractors know their houses they know which actually done work on and they might casually drive by the house and notice that you know the for sale sign is gone the souls in there absolutely so for that reason and then just for actual protection it sounds like you all recommend premium over standard or absolutely so we we always recommend the enhanced with the premium and really for the money is about a twenty percent difference in cost so in terms of the money that folks are spending you know 200 someone house and how much is title insurance because there’s a lender’s title insurance and owners or title insurance can let’s let’s delineate on those children and then dive into the cloths absolutely so lender style insurance is something that your lender requires you to purchase on their baths so that’s why are you exactly have to have renters insurance that’s correct lenders don’t take any chances almost across the board and so because they’re lending you all this money they can require that you pay to protect their interested and so that’s the lender’s title insurance that’s a standard policy looks backwards to cover any type of the title defects that happened prior to settlement ok god now in addition to that you have the option to purchase while your owner’s title policy ok now that’s not required the law doesn’t require that you carry that just like you know for a long time it wasn’t required that you have health insurance ok it is now obviously but we feel like it’s a good idea because it offers you peace of mind and so for a half-million-dollar property how between the both lenders and owners title insurance you’re probably looking at about 24 to 25 hundred dollars c’mon combined exactly right and so it’s difficult to really tell you what the flat cost of it is because it’s determined on a sliding scale the more expensive it is though the more expensive the property is the less expensive the title insurance is $MONEY per dollar that you’re spoken so that cost is directly related than two of the the size of the loan or the amount that the property’s worth it’s not something like a lot of my buyers they they want to negotiate on every single thing which they should you absolutely should but it and even some title costs are negotiable but title insurance is strictly based more on the property and it’s that there’s no it’s right it’s regulated so exactly it’s a sliding scale based on the cost of the of the of the property that you’re buying and so on so lenders not require lenders require I’m gonna party candidates lenders require owners not required now some agents I’m not gonna lie some agents that work within some savvy buyers self-appointed savvy buyers don’t know if title insurance is worth it they don’t know if I mean they’re buying expensive properties but at the same time if you can save 1,200 bucks 1500 box here you’re going to try to do that so sure up in your experience you just were telling me off-camera how many how many transactions you’ve done a lot his title insurance were that you see a lot of issues arise with title insurance i would say title insurance is definitely worth it now obviously you know take my opinion with a grain of salt because you know i’m i’m here the one telling you to buy it but silent George really is about you know keeping you safe you would not having to worry about any potential problems now there’s a lot of turnover in Northern Virginia area and so a lot of things have kind of shaking out alright so a lot of the problems that that you may find some of the other counties you won’t necessarily find in this area however that being said there’s no way to tell especially with things moving forward if there’s going to be a permit because that’s not something that’s that’s really research throughout the process unless you absolutely make a point to to go to permitting and see if they pulled all these permits and people do these type of things all the time there’s so much turnover in Northern Virginia there’s really no way to tell that that’s going to be done or has not been done and so for you know what is you know in relative terms of a small amount of money you never for the rest of your natural life have to worry about anyone trying to take your property away from ok and really it’s a minor sure absolutely and the bottom line is that in some of these problems can be resolved with you know relatively little money you can fix a permitting problem without too much of an issue just by the permit itself but if they have to go into your wall to take a look at that stuff okay that could run you in the thousands of dollars for a contractor to come and fix it the county is not gonna fix that for you once they break your walls down similarly if you have to pay for an attorney okay you’re gonna be running into five figures before you even get to court ok and so these type of things that’s really where the benefit is for for us I’ll insurance because you don’t have to worry about what the costs are to protect your interest you know that you can just call your title insurance company and they’ll take care of it for you and then they’ll come back and say listen we did everything in the background your title is clear titles you quiet title go ahead and sleep easy got it so let’s just say for conversate totally hypothetical let’s say I’m too good for title transfer I don’t like sure lender’s title insurance whatever I oh I opted for no owners title insurance and what surprise surprise something comes up right so what is going to happen is is the deal not going to close am I going to get soon as the county gonna come is a contract like what would be a hypothetical that happen sure well so we won’t close unless we believe there to be clear title ok and so if at the table you decide that you don’t want owners island forms that’s totally fine that’s your option and some people are a little bit more amenable to risk than others if something does happen down the road and determines that there was some document that should have been recorded that wasn’t her suit I’ve been released but wasn’t basically that creates what we call a cloud on your title which means that you can’t sell this property and so that’s resolved ok it may not necessarily be something that you have to go to court immediately . but it may just mean that you’re not going to be able to move on from this property until it’s resolved and so that’s either going to take you know your time hours and hours to figure out with the with the court and counties typically aren’t particularly helpful and a lot of these things that the the clerk for all the wonderful work that that they do in every county they don’t make a habit of walking you through the process necessarily or if it’s something a little bit more urgent that means that you’re going to be responsible for retaining an attorney for telling them what you’re looking for for going to court protecting your interests in it and so and so if that’s the case and you’re able to resolve into you know you’re on the winning side of things that’s great but you’re still out all that money that you have now spent on an attorney interest to give you a small example yeah you know I’ve seen properties where lines of credit when properly released and sellers sellers who had no in title insurance had to go to court spend about thirty dollar thirty thousand thirty thousand dollars in already segment 30,000 $30 Justin in attorneys fees once on tropical have clouded title exactly exactly with the short and you know and they wanted me in because it was there was a problem with the prior title company but at the same time they had to come out of pocket all that money to put that on a credit card that they then had to work with somebody else to try and get that money back so obviously that’s an extreme case you want this these are real life problems that that Josie’s and Joe’s not paying out-of-pocket it’s the people that want to save a thousand dollars gender are paying out of pocket so title insurance probably should get it at the end of the day it’s up to you but definitely it could highly consider getting it and definitely consider getting the enhanced enhances ourselves collapse a little cool so to recap you know what title insurance is now you know how much it costs you know the benefits the drawbacks the risk of not having title insurance Joe I I don’t think you’ve seen any of my videos shame on you but to sum it up I always do this thing called top three so give me the top three things you need to know about I ok i won i would say first thing is that it offers peace of mind we mentioned that baseline number make sure that you don’t have to worry about your title moving forward ok also I would you know say keep in perspective okay if you’re buying a half-million-dollar property you know in the abstract twenty-five hundred dollars is a lot of money that’s not something that everyone just will stay here have it sure but to protect that a million-dollar property for the rest of your life so only paid $25 once it seems reasonable when you put it in perspective and finally I would say if you do have an issue have patience okay because if someone approaches you with an issue obviously want it taken care of just like that ok we’ll be taking care but typically when you have an issue first American or whatever title insurance provider you use is going to have to go through the court system and those things take time and so they will take care for you that’s what it’s for and they’re going to take care for you without any extra cost to you but it may take it may take some time to work its way through the courses you just be aware of that that just because it doesn’t isn’t resolved necessarily in two weeks I mean that they’re not working very hard for you cool there you have it the top 3 things you need to know about title insurance from joe moreno all-star attorney here at University I’ll before we go check out this view this new office i wish i could do a two or something around here this is a sweet officer Jonathan Krause held up to some of these people they’re in arlington virginia there in Northern Virginia and they want to know about you versatile tell them a little bit about what you guys got going ashore absolutely we are a full-service settlement company we’re right here in courthouse we have no up on the fifth floor we have great views actually got too full to full conference room so we can we can accommodate any number of people here we’ve got cable TV if you need to hang out and wait okay we’ve also got you know stuff for for celebrating after the fact if you need to need to pop up in a bottle of bubbly we can probably help you out with that but I think we’re gonna go yeah cool that’s it that’s all I got for you thank you so much for watching thanks for Joe for you hanging out with me today if you have any questions on the link shows car is that cool find out to have so for sure like Jose contact information in the description below if you found this video helpful be sure that the thumbs-up button & subscribe until next time create a productive day take care

11 thoughts on “What is Title Insurance? | Title Insurance Cost | How Much is Title Insurance?

  1. Enhanced Title Insurance? Sounds like pure profit for the title company.

  2. Will you get the real facts from those that make their income selling you the product. They always give a drama story . You could get hit by an asteroid so buy insurance just in case.

  3. Good imfo.

  4. We financed a home in 1998 for $38,000. We then refinanced with cash out in 2005.
    I am going through a reverse Mortgage (haven't signed anything yet) and the lender wants to charge me $952 for lenders title Insurance.
    My wife passed in 2013 that's why I refer to "i" to me only.
    I have talked to a few real estate agents and they say, $952 is "way to much" for a loan (reverse mortgage) on $31,000.
    This is what just one of the real estate agents told me……"Title insurance is a calculation based on the reverse mortgage amount; in your case. If you are borrowing $31,000, then the title insurance should be MUCH lower than $950. MUCH lower."
    I would like your honest opinion on this matter.
    Awesome video. Thank you so much for your free knowledge.

  5. Video starts at 1:33

  6. Horrible audio and lighting can’t watch

  7. Is the lenders title insurance….PMI?
    bc if it is if you're giving 20% most conventional won't require PMI such as we're giving 20% and we don't have to pay PMI.
    I wanted to comment..Just so people can know. Of course not many people can give 20% but to the people who are blessed and can give 20% Please look into giving 20% it saved us $137 in our mortgage!

  8. There's no need to waste money on buyer's title insurance, since Escrows or title companies would not close the transaction if they find liens or other problems with the title. In that case, the transaction is null and void, and the buyer would get their earnest or deposit money back.

  9. Does title insurance cover encroachment of a garage into another property found after the purchase.

  10. The top one thing you need to know about title insurance, that they did not touch on is the types of owners title insurance you are getting at closing before you go to closing find out. Some title insurance with fancy names only covers what the seller has clear title to. It does not cover anything that might cloud the true title to the property. But for me title insurance is well worth the money, just be sure what it covers, its to late to find out what it does not cover after closing.

  11. You guys are two f**** Crooks…. just because you're wearing a suit does not mean you nefariously aren't trying to put fear into perspective buyers to buy another load of crap.

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