Important Title Insurance Terms You Should Know
When you are buying or selling a home, it is important to reach out to a title agency, such as Expert Title Company in Coral Springs. Our team will help protect you from financial loss, while also ensuring that the transaction goes smoothly. There are different types of title insurance to have. Some are required by law, such as lender’s title insurance. Owner’s title insurance, on the other hand, is not required by law but is highly recommended, particularly for individuals who are not familiar with the home buying/selling process. If this describes you, there may be several areas that elude you, including the terminology being used. For many, it may sound like nothing more than legal jargon.
As a result, we have come up with this helpful list of common title insurance and home buying/selling terms you should know during the transaction. When you are searching for title companies in Coral Springs, look no further than Expert Title Company. Owned and operated by two attorneys and experienced staff, we provide our clients with the most efficient and high-quality service available.
A common title insurance term, a clear title means that a title search has been performed and nothing has been found to prevent you from buying or selling a property. Additionally, a clear title indicates that there will be no foreseeable problems with the property transaction.
Cloud on Title
When a title search has been done, you do not want a “cloud” to be found. Having a cloud on a title search means that something has been found that can prevent you from buying or selling the property. There are several reasons a title search can come back with a cloud, many of which are out of your control, whether you are buying or selling the property. Whatever the cause, action must be taken to remove the cloud, which significantly slows down the transaction.
This common real estate term refers to a certain condition that must be met before a home is sold. For example, a home inspection is considered a contingency. When a contingency has not been met, both the buyer and seller are allowed to exit the transaction without incurring a financial loss or other penalties.
The collateral is an asset provided when an individual takes out a loan. In this case, the property is the collateral. If the loan is not repaid in accordance with the original terms, then the homeowner can lose their property.
You will hear the term “deed” more than once, so it is important you frequent yourself with its meaning before entering a home buying/selling transaction. The deed is a written document that proves an individual is the owner of the property. When a home is being sold, deeds are used to transfer the title of a property from one individual to another. Whether you are buying or selling the property, make sure you understand what a deed is and everything it entails. At Expert Title Company, rest assured that our team will handle every aspect of the deed transfer to ensure everything moves quickly and smoothly.
This is a real estate term that the homeowner should know and follow. Homeowners must disclose certain defects of the property before they are allowed to sell it. Common disclosures include:
Disclosures vary depending on what state you live in, so if you are uncertain what information must be disclosed, ask your agent for specification.
If you have heard this one, no, Fannie Mae is not a person. In fact, Fannie Mae is The Federal National Mortgage Association (FNMA), the nation’s largest supplier of home mortgage funds. Fannie Mae loans are desirable because most lenders prefer to make such mortgage loans.
If you have heard of Fannie Mae, then you must have heard of Freddie Mac. Also known as The Federal Home Loan Mortgage Corporation (FHLMC), it is another mortgage institution that competes with Fannie Mae. Much like Fannie Mae, Freddie Mac is a preferable mortgage investor, as it is preferred by most lenders.
Contact Expert Title Company
We understand that everything that goes into buying and selling a property can be daunting – not just knowing the terminology. One decision you can trust is the right one is choosing our title agency in Coral Springs. Contact Expert Title Company for our extensive experience. Call (954) 570-5959 to learn about our services.