For Sale by Owner Settlement Agent in Fairfax, VA
Do I Need Title Insurance?
Although a real estate agent is not needed in a for sale by owner (FSBO) transaction, you will want to work with a qualified settlement agent - FIZZBOW has you covered with our in house attorney and title insurance partners.
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FSBO sellers must select the proper contracts and be aware of their state’s laws regarding the disclosure of their property’s condition. If a seller does not handle disclosures of property defects in the right way, he or she opens themselves up to the possibility of a lawsuit if the buyer feels there has been any fraud. In addition, a poorly worded contract or changes to the contract can give the buyer an easy way out of the contract, which costs the seller time and money.
The team at FIZZBOW is well versed on all of the above and our attorney can draft up the proper contracts for you. Contact us today to get started or to answer any questions that you may have on the FSBO process.
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Do I need title insurance with a FSBO Transaction?
Title insurance protects a homeowner if they inadvertently buy a house that has issues with determining the legal owner of a property. Finding out who legally owns a property may sound simple, but issues can sometimes crop up to make matters a little more complicated. That's where a title agent through FIZZBOW can help.
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One example is when there’s a lien against the property, meaning a third party has a legal right to receive part or all of the proceeds from a home sale. Some lien judgments come from the government, like if you didn’t pay property taxes or have unpaid child support.
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If the previous owner didn’t pay their homeowners association dues, the HOA can use a lien to receive the late fees. When the home is sold, the lienholder should receive how much they’re owed and satisfy the lien.
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There may be a surviving heir who is legally entitled to the property if the previous homeowner died without a will. If the bank sells the house to someone else, the heir may show up later with a legal claim to the house.
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When you’re getting ready to buy a house, the title company will conduct a title search to check for liens and other potential problems. Usually, the title company will catch mistakes before closing and rectify them so the sale can still go through.
Unfortunately, the title company sometimes fails to find a problem before the sale goes through. That’s where title insurance comes in.
Title insurance is highly recommended and protects the homeowner in case of a lien or legal heir that wasn’t discovered during the title search.
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If you don’t have title insurance and a prior issue comes up, you could spend thousands on a lawyer to fight the claim. You may even be forced to sell the home. A title insurance policyholder can rely on the title company to cover those expenses.