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  • Blue Pointe Title

Is Working With a Title Agency Required?

Updated: Mar 15


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When buying a property, there are a few different people you need on your side—  


A lender that will grant you a pre-approval so that you have an idea of what you qualify for when purchasing a home. A real estate agent that will help you find that perfect home. And, a title agency to protect your purchase


Unfortunately, without a true understanding of what a title agency does, many buyers and sellers are left wondering whether they truly need a title agency. 


What a Title Agency Does


Title agencies handle a real estate transaction from start to finish. They will be there when you sign your initial contract, providing you with:


  • Escrow services

  • Title searches

  • Title insurance


They will work with the seller to clear up any title issues, if necessary, and will facilitate the closing so that it goes off without a hitch. Plus, they will confirm that all your closing documents are proper and legal, reducing the risk of issues later.


Your title agency plays a huge role in the success of your real estate transaction. 


Do You Need a Title Agency? 


Whether or not you need a title agency for your real estate transaction depends on the situation. For instance, if you are working with a lender to finance the property, they are almost always going to require that you work with a title agency. 


Lenders want to secure their interest in the property and ensure they get their loan money back. This means they require a title search reflecting that the property is free and clear of any liens, judgments, outstanding taxes, encroachments, and the like. And, as an added boost of protection —- the lender will most likely require you to purchase a lender’s title insurance policy. 


For those paying for real estate with cash, the help of a title agency is not necessarily required because you don’t have to purchase title insurance. However, it is to be noted that you are taking a risk when moving forward with a property purchase without working with a title agency. 


What Happens if You Choose Not to Have a Title Agency? 


As mentioned above, going forward with a real estate purchase without involving a title agency can be risky.


No title company means no title search. That means you will not know if there are any issues with the title or if the seller even has the authority to sell the property. This could put your property rights in jeopardy down the road. 


Without a title search, you cannot purchase title insurance. Should there be any title issues that were not addressed before the closing, they will become your problem to handle. Even if there is an outstanding judgment in the previous owner's name, you will now be responsible. 


Buying a piece of real estate requires specific legal documents that effectively show the transition of property from one owner to the next. Without this, you may not have a successful transfer of property that meets legal requirements to stand up in court. Your rights could be challenged and you may lose them. 


Not having a title agency is simply not worth the risk. 


The Right to Choose Your Title Agency


Buyers and sellers may choose their own title company to represent their interest at the closing, as well as issue title insurance policies. This is all thanks to the Real Estate Settlement Procedures Act (RESPA) of 1974. 


It may be customary for a buyer or seller to be the one to choose the title agency in your area, but it is not required. You have the right to choose your own to protect your interests.

 

Have Your Title Needs Addressed at Blue Pointe Title


At Blue Pointe Title Agency, we understand just how important it is to ensure you have a clear title before investing in a property. And, how title insurance can mean the difference between keeping that property — and losing it. 


We can handle your entire transaction, from contract to closing. 


Contact us today at (517) 258-1511.

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