The Chicago housing market is growing and the number of Roselle homes for sale is growing. New houses in Schaumburg are being added to the market every day. Buyers have a lot of power in the real estate market right now and it is a great time to buy a new home. However, when you do decide to buy that new home, make sure you protect your interest in the real estate by insisting that a title search is performed. A title search is performed by inspecting the land records in the county and state where the property is located to determine the chain of title (ownership history). The title exam will look for problems within the chain of title or problems associated with the title to the real estate.
In addition to a title exam, homeowners should protect their interest in the property with a title insurance policy. Title insurance is designed to protect against insurable title defects including:
If you finance your new home, your mortgage company will almost always require you to purchase a lender’s title insurance policy. This policy only protects the mortgage company in the event that it cannot enforce its mortgage against the property due to a title defect. This policy does not protect the owner from title problems. The cost is based on the mortgage amount and is a one-time fee collected as part of the closing costs.
Owners have the option of purchasing a separate policy that will insure the owner against coverable title defects. The policy may exclude certain things such as easements, restrictive covenants and encroachments but generally protects the homeowner’s interest from major title defects that arise after the deed is transferred and recorded. The cost for an owner’s title insurance policy is a one-time fee and is very reasonable compared to the protection it provides. Because all title defects are not easily detected through a title search, an owner’s policy is highly recommended to protect homeowners.
If you are looking for a new home in the Chicago area, let Re/Max Destiny and Michael Machlet help you with all of your real estate needs. We can help you find your new home, secure financing and answer your questions about the real estate closing process.