Real estate agents are required to provide you the names of 3 title insurance companies. These will typically be companies they’ve worked with before, but they might not be the best for you. [4] X Research source In some states, such as Texas, the premium rate is set by the state insurance department. If rates are set, there’s no need to shop around — just use whoever your real estate agent or attorney recommends. [5] X Research source
The most common example of a problem (also called a “defect” in the title) would be if someone else had a lien on the property, such as a mortgage lien or a tax lien for unpaid taxes. It would be the seller’s responsibility to clear those issues before you could purchase the property. Sometimes a title search will also uncover a discrepancy with the way the boundaries of the property are described from one deed to the next. In these situations, you would typically talk to the owners of the neighboring properties to resolve the issue.
A loan policy or lender’s policy lasts for the life of your mortgage and protects your mortgage holder’s interest in the property. An owner’s policy protects you against losses that might arise from deed or title problems that occurred before you bought the property. An owner’s policy does not protect you against deed fraud or other issues that come up after you’ve bought the property.
Premium rates are based on what you pay for the property. For example, in Texas, you would pay a total premium of $875 for a $100,000 policy, as of 2020. [9] X Research source Mortgage lenders typically require you to buy a lender’s policy. You can buy both a lender’s policy and an owner’s policy. If you buy both, you might get a discount on the lender’s policy. For example, in Texas, where title insurance premiums are regulated, you can get the lender’s policy for only $100 if you also buy the owner’s policy. [10] X Research source
If you have an owner title insurance policy, keep it even after you sell your home because it’s still in effect and still protects you.
If you only bought a lender’s policy when you bought the property, you can also upgrade to an owner’s policy at any time. However, if you buy later, you’ll typically pay the full price for the owner’s policy — meaning you’ll probably save some money if you buy them both when you initially purchase the property.
Only carry essential identification with you Keep personal and identifying information at home in a lockbox Shred documents that contain sensitive information Opt out of direct mail credit offers Don’t sign the back of your credit or debit cards Avoid giving out credit card numbers or identifying information over the phone Verify emails you get from creditors or other agencies
Some of these services are free, while others charge an annual or monthly subscription fee. Compare the different services and what they offer. A subscription service might be better for you, but make sure anything offered above and beyond what you would get from a free service is something you’d actually use and get benefit from.
Make sure you know when you’re supposed to get your property tax bill — if you’re not sure, find out! Make a note on your calendar or set a reminder on your smartphone so you’ll know when to expect it.
Some offices have this system digitized so that you can also check property records online. The website for your city or county recorder’s office will have more information about this.
If you’re renting out a property, be alert for rent payments from tenants as well. Identity thieves might send a letter to your tenants, posing as you, and tell them to mail their payments to another address.
For example, if you own property in Philadelphia, you can sign up for their “Deed Fraud Guard” for free through the city’s website. The service notifies you by email when a document is recorded with your name on it. [19] X Research source New York City has a similar service called the “Recorded Document Notification Program. “[20] X Research source
The recorder’s office will likely charge a fee for the copy and a separate fee to have the copy certified. When you call the recorder’s office, ask for the total charge and what methods of payment are accepted. It might take a few days for your copy to be ready. The person you speak to at the recorder’s office will let you know when you can come to pick up your copy. You can also get it mailed to you, although you’ll probably also have to pay for shipping.
While recorder’s offices don’t typically have any law enforcement capabilities, they can make a note in the property record that you reported deed fraud, which might prevent the identity thief from doing anything with the property, such as taking out a mortgage on it.
Get the name and direct contact information of the officer who takes your report in case you get more information that you want to add. It might take a few days for the written report to be ready. The officer will let you know when you can come and pick it up. While the local police might not necessarily launch an investigation, the official report is a valuable record for you. Keep it along with your deed, title insurance policy, and other documents related to your property.
Usually, you can file a report with the state attorney general’s office over the phone. However, you may also need to go to the office in person to speak with a staff attorney. Provide them with copies of any documents you have, including your police report and your deed. State attorneys general alert other homeowners to deed theft and other housing-related scams that might be happening in their area, so by informing the state attorney general’s office, you’re also helping protect others. [25] X Research source
