Real Estate Investment

Archive for the ‘Property Titles’ Category

Who started the Torrens system and Torrens certificates?

The Torrens system started from an Australian land reformer called Sir Robert Torrens. Below are some benefits of the Torrens System. There are articles on Torrens System that explains what the Torrens System is and the advantages of the Torrens System.

The Torrens System The Torrens system is only permitted in some states. Even in the states that permit the Torrens system, there may be some parts of those states that do not allow the Torrens certificate system. What are Torrens Certificates? A Torrens certificate is a certificate of title of a Real Estate property. The Torrens certificate is issued by government agencies in some states which allow Real Estate property owners to file a lawsuit and obtain the title certificate of the property.

The benefits of Torrens System & Torrens certificates in Real Estate investing

In the states or parts of states that permit the Torrens system, you can look at the Torrens certificate of any Real Estate property and find the names of all the owners of the Real Estate property and all lienholders. This makes Torrens certificates very useful in title search of a property before investing in it. The Torrens certificate system allows the transfer of Real Estate properties without title searches since the title owners names are written on the Torrens certificates themselves.

Tips on Torrens Sytem & Certificates

Torrens certificates are not without errors. So, after searching and examining Torrens certificates, don’t just rely on the information you find on them. You should search other Real Estate records as well.

Title insurance is a critical part of Real Estate and Real Estate investing. There are many places you can get title insurance as well as perform a title insurance search. Below is information about home title insurance, definition of title insurance and why title insurance is important when buying a home. Most people are more used to car title insurance than home title insurance. With the home title insurance, you can get the title insurance claims when there is a problem.

What is title insurance? A title insurance of a home is a policy that protects the home buyer against errors in the title of the Real Estate property. When investing in Real Estate, a home title insurance protects the investor in case there are problems with the title of the Real Estate property.

What is the purpose of title insurance?

Why do you need title insurance? Sometimes, in Real Estate investing, when the investor does the title search, some issues with the title may be overlooked or hidden. Most lenders require you to get a title insurance policy for safety so that if there were issues later on, the title insurance policy will pay. Issues that could arise later that requires title insurance include claims against the property that take precedence over the loan such as taxes.

Is home title insurance necessary?

Some Real Estate investors don’t want to buy a home title insurance policy when they buy a house if the lender does not need it. However, not getting a home title insurance is risky because there are many Real Estate investors who did not get home title insurance policies and end up having to pay a ton of money correcting their mistakes.

An example of a problem that could occur if you buy a home without the title insurance policy is that there may not be a problem with buying the house but when the Real Estate investor has fixed the house up and ready to sell, he or she cannot sell without a clean title. This can lead to a lot of problem that could potentially bankruptcy the Real Estate investor. Without the home title insurance flipping the fixer upper may not be as easy as you hope.

Among top and well known title insurance companies are:

• First American title insurance company
• Chicago title insurance company
• Fidelity national title insurance company