Questions to ask when selecting a title company – Part II

3. How is my investment protected?

It is important not only to protect the clients’ funds, but also to protect their investment into the future.

It is absolutely fitting for Realtors and homebuyers to inquire about an underwriter’s financial rating—and a reputable title company will be glad you asked.

Here is what the ratings mean:

A + Rating Property GuidingA+ or A-, A, or B+: Indicates that a title underwriter has a strong overall financial condition that will allow it to meet any future claims. As a rule, these companies have good operating earnings, are well capitalized, and have adequate reserves.

B: The ability to meet future claims can vary widely in this category. For this reason, take extra care to compare individual companies in this category.

C+: May have some financial ratios that are below average, but these companies are still considered “investment grade.”

C: May be financially weak in one or more areas of liquidity, asset quality, capital and reserves, and earnings.

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4. Is my title company a neutral third party?

Some title companies are now owned by lenders, real estate firms, and or builder’s. These arrangements are legal if properly structured and disclosed. The consumer, however, is often best protected when there is no conflict of interest or financial incentive for the referral of title business.

When considering an affiliated title company, a good question to ask is whether the buyer’s interests would be better served if the escrow money and closing were handled by a neutral third party.

We could list hundreds of questions, and well maybe someday we will!!!

But it is important for you as a consumer to know who you are using whether you are at choice or not.

Call us at Title Junction 239-415-6574 for answers to your questions – today!

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Posted on January 11, 2013, in Title and tagged , , , , , , , , , , , , , , , , . Bookmark the permalink. Leave a comment.

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