Investment Protection: Invest in Real Estate the Right Way

Investment Protection in One Simple Step

Investment protection with title insurance

A very important task of any real estate investor is to perform the necessary due diligence prior to purchase.  As investors we want to buy down risk. One of these tasks it to perform a title search on the property. Investment protection is a paramount requirement.

With respect to real estate, “title” refers to legal ownership of property. Title insurance is designed to protect a property owner from unknown claims against a property that could arise after purchase. Should a defect in the title surface, the title insurance company would be liable to the policyholder’s loss up to the amount of the policy.

Typically the title insurance company is not the actual insurance company. They are the facilitator in issuing the policy.

Property owners put investment protection such as insurance in place to cover themselves in the event something unexpected happens. Simple Acquisitions ensures title insurance is purchased for every property we acquire. Going without is just not an option.  Some of the more common title issues that arise include the following:

  1. Foreclosure Mistakes:    Improper title transfer
  2. Forgery and/or Fraud:    Fraudulent execution of a document
  3. Wills in the Chain of Title:    A mistake during the probate process for a previous owner
  4. Incorrect Legal Descriptions:    Errors in the description of a property.
  5. Problems with Public Records or Surveys:    Improper recording of claims or tax data
  6. Existing Liens:    Mechanics, utility, federal & even state tax liens incurred from previous owners
  7. Third party claim    3rd party claim of interest in your property
  8. Zoning by-laws Violations:    Easements, right of way etc.

Bottom line, as investors we need investment protection. We need to have an accurate and legal title policy in hand when we purchase a property.  The title company reviews title, issues insurance policies and files and records paperwork in the local country land records office. They can also be the closing agents and act as escrow officers for real estate transactions. This makes them a multi-tasking power team member.

Unlike other types of insurance, such as car or life insurance, title insurance only requires a onetime premium. It also insures back in time, not forward. The payment is paid at closing and it insures the insured through the duration of his ownership of the property. It’s a small price to pay to ensure your property title is free and clear of any issues/liens.

It’s important to choose an experienced title company. It can be the difference between a complicated and bumpy closing vs. a smooth and quick closing.

As you can see, the Title Company is another professional that we add to our real estate power team. If you want to learn how getting involved in real estate can benefit you, get in touch with us.

Remember, real estate doesn’t have to be complicated.

With Simple Acquisitions it’s smart and simple!

Marc Dupuis

About Marc Dupuis

Marc got the real estate bug in his early twenties, and it’s never left. He has multi-faceted experience dealing with real estate investment companies. Marc’s is what you can call a real estate jack of all trades. He’s been an investor, landlord, property manager and builder in the Ottawa area since 1996 when he bought his first income property. He has since acquired a dozen income generating properties. He’s brokered property purchases for friends. He’s a partner in a commercial building and has built several new homes. His most recent build was featured in the May 2012 edition of Ottawa Magazine Marc manages the research and acquisition activities for Simple Acquisitions, LP. He creates strategic alliances with financial institutions, property managers, brokers, attorneys, contractors, developers, and real estate investment companies on a daily basis. Marc is also the liaison between the company and its private lenders. Marc has an innate ability to see the end result when nobody else can. He’s known for bringing all the necessary resources together to achieve his goals. He loves to talk to aspiring investors and provide education and guidance where he can. He even sent a laptop to an unemployed man that he met at a gas Station in North Carolina who was down on his luck, in the hopes that it would be a tool that could help him learn about way to make a living.
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