Title Insurance: When is the best time to get it?

Question

I just listed my home for sale on the MLS (in Colorado), and I was wondering when do I start shopping for title insurance? Do I start calling title insurance companies now? Or will the title insurance companies require me to have a purchase agreement first?

Answer 1

Typically, the party who pays for the Owners title insurance would be the party to choose the title company.

If you have a realtor, let them handle it, they'll know when and who to open it with. If you don't, the house is for sale by owner (FSBO). Usually title companies prefer to have a contract signed when dealing with FSBO's.

You can easily call a local title/escrow company and ask if you are in a 'seller pay' area. If you are, ask what their fee is for the owners policy based on your sales price. You can then call several companies and ask for their fees to compare.

You can also ask if they would open a pre-sale order for title insurance.

If you're in a 'buyer pay' area, let the buyer and/or their realtor deal with it.

Good luck :)

Answer 2

You don't get the title policy, the buyer and their lender do. You got yours when you bought the home.

You might be able to save your buyer a few $$$ at closing if you can find the policy and the lender accepts it.