Title Insurance – Don’t Leave Home without it!
My Tulsa home Buyer was under contract to purchase her dream home, and it appeared that we were sailing towards a smooth closing. A week before closing, our Title Company representative told us that there was a blemish in the title work, and they would not issue my client Title Insurance until that was resolved.
The Oklahoma real estate contract automatically allows a thirty-day extension to give the Seller an opportunity to cure any blemish in the title work. However, this was not able to be cured in that time frame.
The blemish, as it turns out, was a lien release had been improperly recorded. This blemish was discovered when the Seller purchased the property seven years previously – and in an effort to close her transaction on time, the Title company escrowed funds to cure the blemish with a quiet title suit. However, they never got around to doing so.
Now that it’s time for her to sell her property, this flaw rears its ugly head again. The humorous part is that the same Title Company offered MY Buyer a quick close if we would again escrow funds to file a quiet title suit to resolve the issue.
Really? You want my Buyer to purchase a home with the same title flaw that you promised (and charged for) to correct several years ago? I don’t think so.
Title Insurance – Don’t Leave Home without it!
Thankfully, the Seller had Title Insurance and a claim has been filed to expedite this correction. It may take two to four months to correct this title flaw, but we’re not closing until clear title can be conveyed.
Clear Title is evidence of ownership, evidence of lawful possession.
Title Insurance – an insurance policy that protects the holder from loss sustained by defects in the title – a one-time charge payable at closing.
Title insurance in the state of Oklahoma is lower than in most states, because our abstracts are brought up to date with each transaction. It’s a very minor expense in the grand scheme of things. You wouldn’t consider purchasing a home without hazard insurance, so don’t ever consider skimping on title insurance.
Thankfully our real estate transaction was stand-alone, and our failure to close did not hold up other transactions. The Sellers and my Buyer worked out an Early Occupancy agreement and we will all meet at the closing table when the Seller can convey clear title.
If you are searching for a Tulsa Realtor who will watch your back, walk you through the home buying process and offer solutions to problems as they arise, please do give me a call! 918-852-5036
Content written and published by Lori Cain.
