Homeownership is a huge investment. Often, it is the largest investment a person will make in their lifetime. Unfortunately, companies selling title or home “lock” services use the magnitude of that asset as a prime opportunity to prey on homeowners. Buyers have to jump through more hoops than ever before to purchase in today’s market, so it is understandable homeowners don’t want to leave anything to chance when it comes to securing their title.
We as title companies agree, that your investment should be protected. That protection, however, should come from a reputable insurer. We hear far too often from clients they have heard companies on the radio that promise to monitor your title to catch any fraudulent activity that may occur. Realistically, that is just about all that these sorts of companies can do. They do not actually provide any sort of insurance, nor can they help you in resolving any issues if a fraudulent deed is found. This is an exaggeration of true statements used to take advantage of those who may not understand or know their rights as a homeowner. Yes, title fraud can occur; and it is important to remain vigilant; but there are far better ways to ensure your title is protected than a monthly subscription to a site that has little to no power to protect you should the time come.
The very best line of defense against title fraud is something title companies offer called title insurance. This insurance is paid for in a one-time fee at closing with no deductible. “It protects real estate owners and lenders against any property loss or damage they might experience because of liens, encumbrances, or defects in the title to the property”. We partner with trusted underwriters/insurers who have been in business for decades and are equipped to handle any situation that may arise regarding the interest of your home.
One of the main scare tactics these companies use to gain customers is by instilling in them the fear someone will “steal” their title by way of a forged deed and borrow money against their home. Thankfully, title insurance through an underwriter covers you from false impersonation, as well as improperly recorded documents. Since the deed in question would have been fraudulent, the scammer would have no right to your home and you would not owe anything on that loan.
One last aspect of title lock companies we believe is important to recognize is that these businesses charge for their services monthly or annually, which could certainly add up should you own the property for an extended amount of time. As mentioned above, title insurance through an underwriter is paid once and protects you and your heirs for as long as you own the property without deductibles or monthly payments.
Never hesitate to reach out to your title agency or underwriter if you have questions about your insurance. We are always happy to explain your coverage and offer you peace of mind. The real estate market is quickly evolving, and we must remain more watchful over our assets than ever before. Title insurance serves as your ally in doing just that.
Josh Terry is a partner at both Tennessee Title Services, LLC, and RPR Insurance, LLC. Josh and his business partners established TN Title in 2008, and have grown to open ten locations serving across the state of TN. He’s a graduate of Lipscomb University and has lived in Middle Tennessee for 25 years with his wife, Mandi, and their three children. Josh has a heart for helping others, with a passion for missions both locally and abroad. Whether it is through the journey to homeownership or something more, he strives to live his life serving his family and community.
