In many states, the purpose of the title company is three-fold: it sells title insurance, handles escrow funds, and does the actual closing where you go in and sign the paperwork. Other states have attorneys or escrow companies that do the actual closing. But, regardless of who does the closing, title companies still provide the title insurance coverage on your property. encroaching on the future parkway. Understandably, the new homeowners were upset and called the title company. Luckily, their insurance was with a good company and they ended up with a fair settlement.
At closing, title insurance and related settlement fees will be on the HUD statement in the 1100 section. The biggest fee on the buyer’s side of the statement will be an insurance policy you buy for the mortgage lender. This insures that the property has a good and marketable title.
Title insurance is one of the biggest yet least understood costs in buying a home. It’s one of those fees that you don’t get involved in directly. And, like homeowner’s insurance, it can have a big impact when the need suddenly complicates your life.
Charles and Kristen found this out when they thought they had bought a home on a half-acre along a river. What the seller didn’t tell them was that the county had bought an easement along the river for a parkway a few months previously. This reduced the back property line by 40 feet, and somehow the title search had missed the easement.
When they were landscaping their backyard, a county parks employee came by to stake out the jogging trail and told them they were
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