Title insurance can sometimes feel like a compulsory line item on your never-ending real-estate to-do list. Most don’t realize they have a choice in selecting their title insurance agency in New Jersey. Still, more don’t realize how important it can be to choose the right title insurance company. Here are some tips to help you shop for this little-known yet critical part of almost every real estate transaction.
Title companies come and go for various reasons. Maybe some didn’t adapt to changes in technology, or perhaps they couldn’t shift their business model to better engage with the professionals that rely on them for excellent title insurance services.
When shopping for a title company, it can pay to ask around. The realtors, lenders, and attorneys involved in your transaction will likely have opinions on who does the best work. Listen to them as well as your friends. Reputation matters.
- Shop for Experience
Yes! Price is still important. However, let’s say you’re comparing two title companies. One has been in business for decades, while the other is just a few years old. How much weight should you put on the decades of experience vs the relatively new company? Probably more than you would guess.
Title companies may seem like a “silent partner” in the property buying and selling process. But when issues arise because of a poor title search, for example, everyone in the transaction suddenly knows the title company’s exact role. In a process that can turn a smooth real estate transaction into a property purchasing nightmare, experience is critical. Therefore, you should always partner with the right title insurance agency during your real estate closing.
- Location, Location, Location!
We did borrow the above title from our friends, the realtors. Thank you! Just as location affects the value of your home, location affects the value your title company can bring to your transaction. Having a hand to shake and a person to talk to can feel like a luxury in this day and age. In resolving issues, you want to speak with someone who understands the local market and the specific problems you’re attempting to resolve.
The wrong title company can make you feel like you’re talking to a wall. Know where your title company is located. They should be very familiar with your market and any regulatory issues that may affect the transaction.
- Understand the Fees
If you are obtaining a mortgage for the property, title service fees are listed in section B or C of page 2 of your Loan Estimate (and in section B or C of page 2 of your Closing Disclosure). If the title services are listed in Section C, you can shop for them separately. If you choose to purchase owner’s title insurance, it will be listed in section H of your Loan Estimate. If you’re purchasing the property outright, your title fees can be quoted out for you. They will also be listed in the closing documents.
Don’t hesitate to contact us if reputation, experience, and location are important to you. We have more than 50 years of experience serving clients throughout all the counties in New Jersey, with two convenient locations in Flemington and Hoboken. Call or email us today to learn how we can help your real estate transaction.