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Home Security: Understanding and Negotiating Title Insurance

This article provides information on title insurance. This material is excerpted from an article by Judon Fambrough of the Real Estate Center at Texas A&M University.

Understanding and Negotiating Title Insurance

A title insurance policy should help reveal some of the following things for a buyer:

  • who really owns property;

  • whether the owner really has the right to sell their interest in the property

  • whether there are restrictions on how property can be used.

If the policy fails to disclose an impediment that affects the value of the property, the title company may be liable.

To understand a title policy and learn how to negotiate it changes, prospective buyers should talk to a real estate professional, such as an attorney. 

See Home Security: Understanding and Negotiating Title Insurance by Judon Fambrough of the Real Estate Center at Texas A&M University.

Sales Contract Strategies

To gain strategic and economic advantages from a title company, buyers should request certain items from the sellers in the sales contract. The possibility of getting each depends on whether it is a buyers' or sellers' market. For example, a buyer should ask the sellers to provide a residential owner's title policy from a title company selected by the buyers. 

The article Home Security: Understanding and Negotiating Title Insurance by Judon Fambrough of the Real Estate Center at Texas A&M University analyzes real estate contract forms, and makes more recommendations about tactics buyers can take with title companies and sellers.