As a title professional, there is serious responsibility put on you, involving analyzing information and recording deeds in the public record, such as confirming property ownership and handling other documents such as mortgages or liens regarding who may have interest in a given property. When errors occur while processing title documents, it could lead to a title defect or a mistake that must be corrected before selling the property. It is not uncommon for mistakes to not be noticed until after a title has already been transferred, which is why title insurance is so valuable. Sometimes no one notices an issue until the new owner tries to sell a property. Imagine that when reviewing the chain of title documents for the resale, someone notices the incorrect legal description. One small mistake like this can turn into a massive lawsuit. Land record systems are not perfect, and human errors recorded in the public record, titles, and the mortgage electronic registration system create confusion that can jeopardize a property owner’s title rights. Title insurance exists precisely for this reason. Here are some tips to help title agents avoid these title insurance disasters.
Trust your Gut
If you come across something that does not seem right, it is best to trust your gut. Title professionals are key components of real estate transactions. After both the buyer and seller sign the contract, it is your responsibility to spot red flags or inaccuracies. It is on you to go through the information, ensure it all adds up, and to keep organized documentation throughout all communications.
Not only are you in the hot seat for guarding the transaction against external threats such as business email compromise and wire fraud, but you also should think about internal transactional fraud like forged lender documents, for instance. It is not worth ignoring something that made you concerned. An investigation may be what avoided a claim.
Double-check Someone Else’s Work
It is just good business to be involved in every step of the process and double-check everything. With high volumes of paperwork, it’s easy to understand how misinformation occurs. Some title agents just input the data into the record systems and on the chain of mortgage documents. They are quick to continue with mortgage assignments without a thorough examination. It is always in your best interest to double-check someone else’s work. Follow strict best practice protocols to ensure property information is accurate and truthful.
Don’t be Afraid to Ask Questions
Keep in mind that underwriting counsel is there to help you through the process. It is better to get clarification on something if you are unsure than to go forward on your own and be sorry after the fact. There is so much that goes into this job. You work with sensitive data, and your clients hold you to a certain standard. You also have real estate agents as well as lenders relying on you to get the transition closed smoothly. Title agents certainly have a lot on their shoulders with how they transfer data. The regulators are staying up with how you are handling information and funds during the transaction. Luckily, you do not have to figure everything out on your own. There are underwriters you can use that would likely be a great resource. You can also lean on colleagues and those who have walked the path before you. The fact of the matter is, don’t be afraid to ask questions!
Verify Information
Whenever information is given to you, especially from a new or noncredible source, it is best to verify it. Be vigilant even if there are no red flags to help prevent issues down the road. Sellers can refuse to cooperate after things go astray and then sue the title company. Depending on the scenario, it may be needed to ask the underwriter for help in persuading a seller to come clean and pay off the lien to complete the closing. Every case is unique and must be treated as such. However, verifying information from the get-go can never hurt regardless of the situation.
Breathe
Burnout is a real thing, easily with a heavy workload when you can’t find time for yourself. We are undeniably in a hectic real estate market. Be sure to check in with yourself to provide the best service possible. Maintaining a healthy work-life balance truly goes a long way in delivering quality work. Managing the heightened frustration of real estate agents, lenders, and consumers can be a lot to take in, so don’t forget to breathe. When all else fails, title agent e&o insurance can be there to protect you.
About IPRO Agency Insurance Services
IPRO Agency Insurance Services is a specialty insurance brokerage with the expertise to protect your firm, assets and to help you retain clients. Our services offer all types of professionals the protection they need so they can stay committed to their work with ease. We are connected with leading insurers to bring you the best coverage for your unique needs and areas of risk. Get in touch with us at 888- 673-8039 so we can begin to safeguard your success.
