At Liberty Title we believe title insurance in Michigan is too expensive, and closing practices, specifically the “split closing” has endangered consumers personal information and put their money at risk. A split closing happens when a buyer and seller each use their own separate title agency to close their side of the transaction.
Liberty Title’s Better Policy-Better Price program gives consumers the protection they need at the time of purchase/sale, costs less, and provides actual insurance to homebuyers against home title theft.
The American Land Title Association Homeowner’s Policy of Title Insurance (commonly referred to as an enhanced or expanded owner’s policy) provides significantly more protection to homeowners than a standard owner’s title policy. The most important of these protections is coverage against fraud and forgery that occurs after the closing, often known as home title theft. Explanation of coverages.
If a homebuyer is obtaining a mortgage on their new home, the homebuyer is required to provide the lender with a policy. This policy is called a Lender’s Policy and does NOT protect the homebuyer; this policy protects the lender. Liberty Title saves homebuyers at least 25% on the cost of the lender’s policy – a savings of approximately $213 on a $200,000 mortgage.
Buyer’s real estate agents have been reluctant to ask for the enhanced owner’s policy for the homebuyer because the increased cost would fall on the seller. Liberty Title’s Better Policy-Better Price program provides this superior policy to homebuyers at no additional cost to the seller on qualifying transactions.
To receive these added protections at a lower price, Liberty Title must issue both the owner’s policy and the lender’s policy. This unified closing through Liberty Title reduces the risk of cybercrime and wire fraud as only one title agency will be overseeing the money and the personal information of the buyer and seller. Benefits to not having a split closing.
If you are a seller, request that the buyer use Liberty Title for their mortgage closing. Let the buyer know that they will receive the enhanced owner’s policy and that they will save money on the lender’s policy.
If you are a buyer, request that the seller use Liberty Title so you can receive the savings on the lenders policy and get the enhanced owner’s policy at no additional cost to either buyer or seller.
Real Estate Agents may steer you to a particular title agency based on their professional judgement or based on their interest in an Affiliated Business Relationship. (Affiliated Business Relationships provide agents or their brokers with financial compensation or other benefits from their affiliated title company to refer business.) Be sure to find out why your agent wants to use a particular title agency and know that you have the right to shop around and find the best fit for you. “Split closings” often end up with both buyer and seller paying higher costs.
Buying and selling a home is often the most important transaction in your life.
Trust Liberty Title – we have been doing this the right way for over 50 years!