What Is Title Insurance When Buying a Home in Las Vegas?
When you’re buying a home in Las Vegas, you’ll hear about title work and title insurance as the transaction moves toward closing. They may not be as exciting as choosing the home, but they’re an important part of transferring ownership.
Title insurance is designed to protect against certain problems involving ownership of the property that may already exist when you purchase the home.
What Does a Title Company Check?
Before closing, a title search is performed to review public records and identify issues that could affect ownership of the property.
Depending on the property, the title search may uncover matters such as:
- Existing liens
- Unpaid assessments or other claims
- Errors in public records
- Ownership disputes
- Easements or other recorded matters affecting the property
Issues discovered during the title process generally need to be addressed according to the requirements of the transaction before ownership can be transferred.
What Does Title Insurance Protect Against?
Unlike many types of insurance that protect against future events, title insurance generally addresses certain covered title problems that existed before you became the owner but weren’t discovered before closing.
The exact protection depends on the policy, so buyers should review the coverage, exclusions, and exceptions associated with their particular title policy.
Are There Different Types of Title Insurance?
Yes. You may encounter both an owner’s title insurance policy and a lender’s title insurance policy.
A lender’s policy protects the lender’s financial interest in the property and is commonly required when financing a home.
An owner’s policy is designed to protect the homeowner’s ownership interest, subject to the terms and limitations of the policy.
They protect different interests, so having a lender’s policy doesn’t mean the buyer personally has the same protection.
Who Pays for Title Insurance in Las Vegas?
Who pays particular title-related expenses can depend on the purchase agreement and the terms negotiated between the buyer and seller.
Rather than assuming a particular party will pay a specific charge, review the purchase agreement and the closing-cost information for your transaction.
How Does Title Work Fit Into Escrow?
Title and escrow are closely connected during a Las Vegas real estate transaction.
While title work helps establish whether ownership can be transferred according to the transaction requirements, escrow helps coordinate funds, documents, and other items necessary for the sale to close.
Both are working behind the scenes while the buyer may also be completing financing, inspections, appraisal, and other requirements.
When Will I Receive the Title Information?
Title documents are provided during the transaction so there is an opportunity to review matters affecting the property before closing.
Don’t simply assume that every item in the title paperwork is routine. If something isn’t clear, ask questions so you understand what you’re receiving and what will remain associated with the property after closing.
Before You Close on a Las Vegas Home
Buying a home involves more than negotiating a price and obtaining financing. The title process is another part of making sure the transaction can move toward a proper transfer of ownership.
As closing approaches, you’ll also have one last opportunity to check the property’s condition.
If you’re planning to buy a home in Las Vegas or Henderson, I can help you understand each stage of the transaction and what to expect from offer through closing.
