Title underwriters and title agents play different roles
Buying a home is a significant financial move. Most people are making a huge investment when they seal the real estate deal. According to Zillow, the median home value in the U.S. has increased by $16,000 over the last year. It’s safe to say that homeowners have a lot at stake when it comes to protecting their property.
Title insurance is an extremely important part of the purchasing process. It minimizes potential liabilities that property owners might undercover years down the road. From an insurance standpoint, this is an excellent option.
However, buying a house is a complex process. You are dealing with multiple parties, such as a real estate agent, bank, lawyer, property seller and more. Therefore, it’s important to have a basic understanding of who you might be in contact with. A title insurance company and title insurance agent are two entities that oftentimes get confused.
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Buying, selling, or facing a property dispute? Our St. Louis real estate attorneys protect your investment every step of the way. Contact TdD Attorneys at Law today for a free consultation.
A title insurance company has your back
The title insurance company, also referred to as a title underwriter, assumes the financial risks involved in a real estate closing. These companies set the guidelines, pricing and financial backing behind every policy, essentially deciding the terms under which a title insurance policy can be issued. A title underwriter possesses skills unique to their profession, which includes:
- Expertise about the law and how it applies
- Analyzing risks associated with a transaction
- Expertly judging the probability of the risks
- Keen knowledge of a title insurance policy
A title insurance agent investigates
The title insurance agent, also known as the title company, is a subcontractor that represents the title company in a real estate transaction. While the underwriter sets the rules and assumes the financial risk, it’s the title agent who handles the day-to-day work on the ground — examining records, coordinating with the parties involved and ultimately issuing the policy locally on the underwriter’s behalf. They attend the closings on behalf of the title company, essentially acting as an agent for the underwriter. Their role and responsibilities differ from that of a title company’s, which includes:
- Examining property records
- Determining rightful ownership
- Investigating possible liens, easements or encroachments
- Issuing the title policy at the local level once the underwriter has approved the terms
A title company is important because it stands behind the title policy and insures the property against possible insurance defects. On the other hand, a title agent does not represent title holders in court.
A title insurance company and a title agent can work together, or they might act separately. The Missouri Department of Insurance regulates both entities. Homebuyers can pick and choose which title agent or title company they want to work with.
¨With a background in business and real estate, I have a strong passion for guiding others through these complex areas of law. I became an attorney to have a positive impact on others. I strive to do everything I can to help my clients find a solution for their unique legal challenges.¨
Ted Disabato
Talk to TdD Attorneys at Law About Title Insurance
Navigating title insurance and understanding who’s who in a real estate closing can be confusing, especially when a title defect surfaces. TdD Attorneys at Law helps homebuyers and property owners throughout Missouri understand their title insurance policies, resolve title defects, and protect their investment. Our managing attorney has firsthand experience on both sides of the industry, having served as underwriting counsel for a title insurance company and president of a title insurance agent.
Schedule Your Free Consultation Today
Whether you need help filing a title claim or clearing a title defect, our St Louis Title Insurance and Escrow Lawyer are ready to guide you through the process. Contact us today at (314) 530-3722 to schedule your free consultation.
Ted Disabato
Ted D. Disabato is the Managing Member of TdD Attorneys at Law LLC, Broker/Realtor of TdD Premier Real Estate and The Realty Shop, and partner in VUE Title LLC and VUE Mortgage LLC – providing his clients cradle to grave service. If you’re looking for an experienced St. Louis estate planning lawyer, make sure to contact Ted Disabato today.