How do you know they are real?

How do you know they are real?This was a great question that I got from one of my clients the other day.

How do I know that the seller is real and owns this home?

With identity theft in the news everyday, it is a fair question to ask.  Most of the time, you never meet the other party to the sale  And this is especially important when you are negotiating with someone who acts a little odd or mysterious. 

I knew some of the answers like:

1.  You are required to provide the proper documentation and identification to the title company to show you are the correct owner of the home.  

2.  If the property is owned by a corporation, then the seller is required to provide the Articles of Incorporation and a list of signatories that are authorized to sign on behalf of the company.  These documents are notarized and on file with the state where the cooperation was opened. 

One area that I did not fully understand was how your title insurance comes into play in these situations.

So, I asked Kevin Brady or Simplified Search and Escrow.  Kevin is a super nice guy and he was happy to answer the question.

First, he said that your title insurance policy covers you against a fraudulent transaction.  

Second, the insurance company that issued the policy would pursue action against the title company that allowed the fraudulent signatures to be used.

And that’s important because most closings these days are split.  The buyer closes with one title company and the seller closes with another.  The title company you hire has no control over the actions of the other.  

This is just another one of the reasons that you should never close on a home or a loan without title insurance.  

If you have concerns about a specific case, I suggest that you reach out to the attorney of your title company.  They should be able to best answers your questions and resolve your concerns.

And if you don’t know a good one, just let us know and we will send you a list of the best in Nashville.  

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