Over the past few months, I’ve been trying to demystify the mortgage lending process for all my viewers, listeners, and readers, interviewing everyone involved from the underwriter to the loan processor. But one piece that tends to get overlooked is the title company. That’s why I sat down with Erik Halgrim from Old Florida Title to learn all I could about his business.
Erik started Old Florida Title with his brother back in 1998, so you could say he knows the field. First off, I wanted him to explain just what title insurance is. “Basically, what we’re doing as a title agency … is making sure the property is fully conveyed to that buyer,” he says, to ensure that “when your buyer gets that property, they’re getting 100 percent ownership of that property.” There’s a lot that goes into it, he says, but the bottom line is, it’s their job to make sure that “when you get it, you own it, and there’s nobody that’s going to be contesting your property.” That’s what they’re insuring.
If someone from, say, 1948 comes out of nowhere and claims you owe them a whole pile of money from the property, they can file a claim against the title policy. Then, the title company’s underwriter defends against that claim, avoiding all associated legal fees, and the title company pays off the funds or interest to resolve the claim if necessary. The title company protects you from unexpected circumstances like old liens from previous owners, unpaid HOA dues, and a million other things you'd never predict as a buyer. And unlike other insurances, the title policy is a one-time fee, good as long as you own that property.
Even if you’re a cash buyer, you definitely want to get title insurance. It’s a no-brainer policy that will protect you from all kinds of shenanigans in the long run.
To learn more about the nitty-gritty of title insurance, check out the full interview on my YouTube channel, “Tim Hart,” my Facebook page “Tim Hart- Loan Officer,” or listen to the “HartBeat” show wherever you get your podcasts. It’s useful info, whether you’re a realtor or a first-time buyer trying to make sense of the complex world of home ownership.