Demystifying Title Companies: An In-Depth Conversation with Patrick Thornton, VP of Phenix Title Services

In this article, we will dive into the world of title insurance and the role of title companies in real estate transactions. We will be drawing insights from a conversation with Patrick Thornton, an expert in the field and the owner of Phenix Title Services.

The Importance of Title Insurance

When it comes to protecting your investment in real estate, there are two main options: suing the seller or filing an insurance claim. While neither option may be ideal, if you had to choose one, filing an insurance claim is often the better choice. This is because title insurance provides a system and resources to handle claims and pay for any necessary legal representation. On the other hand, suing the seller can be a lengthy and costly process, with no guarantee of success.

It's important to note that even if you choose to sue the seller, there is no guarantee that you will win the case. There may be instances where the person who sold you the property did not have the legal right to do so, and you could end up losing both time and money. However, if you have a title insurance policy, the insurance company will cover any losses if the real estate problem cannot be resolved through litigation or other means.

Types of Deeds and Their Importance

While it's important to understand the different types of deeds and what they entail, in today's world, where most people opt for title insurance policies, the type of deed may not matter as much. Title insurance policies are designed to catch problems regardless of the type of deed involved. So, while it's still important to know what the seller knows and what they're promising, the focus should be on obtaining a title insurance policy for yourself rather than relying solely on the promises of the seller.

Benefits of Title Insurance Policies

Title insurance policies provide protection for both lenders and owners in real estate transactions. In a typical closing involving a couple buying and selling a property with a mortgage loan, there are two title insurance policies involved. The lender policy protects the bank that is lending the money, ensuring that they will receive a good title if they ever need to foreclose on the property. It's worth noting that every lender requires title insurance, which speaks to the importance of insuring against potential risks.

The owner's policy, on the other hand, protects the buyer. It covers various scenarios, such as old judgments or liens that were missed during the title search, outright fraud by the seller, or the discovery of missing heirs. Additionally, title insurance policies can also cover issues related to refinancing, such as problems with release paperwork. By purchasing an owner policy, buyers can have peace of mind knowing that they are protected against potential title-related issues.

Title Insurance for Cash Transactions

Even in cash transactions where there is no lender involved, it is still advisable for buyers to purchase title insurance. Not only does it provide protection for the buyer, but it also ensures that the transaction follows the established system in case any issues arise. Without a title insurance policy, the buyer would have to rely on the title company to resolve any problems, which may not be ideal or efficient. Therefore, it is in the best interest of both parties to have a title insurance policy in place, even in cash transactions.

Working with Phoenix Title

If you're interested in learning more about title insurance or getting in touch with Phoenix Title, there are a few ways to do so. You can visit their website at Phoenix Title or contact their Portland office at 207-774-0434. Additionally, you can reach out to your real estate broker or lender and let them know that you would like to work with Phoenix Title. They will be able to guide you through the process and ensure a smooth transaction.

Patrick D. Thornton, Esq.

Executive Vice President

Managing Attorney

119 Middle Street

Portland, ME . 04101

(207) 774-0434

pthornton@phenixtitle.com

Title insurance is a crucial aspect of real estate transactions, providing protection and peace of mind for both lenders and owners. By purchasing a title insurance policy, buyers can safeguard their investment and avoid potential legal issues in the future. Whether you're buying a property with a mortgage loan or conducting a cash transaction, it is highly recommended to obtain a title insurance policy. If you have any further questions or need more information, don't hesitate to reach out to Phoenix Title or consult with your real estate broker or lender. In this article, we will dive into the world of title insurance and the role of title companies in real estate transactions. We will be drawing insights from a conversation with Patrick Thornton, an expert in the field and the owner of Phenix Title Services.