Title insurance has tremendous value; however, it is often misunderstood by both real estate agents and consumers. During our pre-market interviews of real estate agents, this was frequently raised as a pain point.
“Can’t you simply tell me if there are any matters that will potentially delay closing?”
We listened and developed what we call the JetScore™.
Think of it like a FICO credit score, but for your property’s title. Let’s take a quick step back.
“What is homeowner’s title insurance, anyway?”
In simple terms, it is a policy that protects the homebuyer’s property rights. No homebuyer wants to inherit the existing debts or legal issues of the previous owner. You might find this surprising, but title problems are found in approximately 30% of transactions.
What are these problems, you ask? Some of the more common title problems include:
Errors in public records, like a filing mistake or inaccuracy on a former deed
Unknown liens resulting from unpaid debts of former owners
Missing heirs who come forward years after the owner passes away
Forgeries, like forged or falsified documents
Survey or boundary issues that may affect your ownership and cause disputes
Now let’s circle back to the JetScore™.
“I’ve put an offer on a home and received the title commitment; how can I be expected to know what any of this legal jargon means?”
We feel your pain. That’s why we implemented an easy to understand grading system. It’s an estimate the of the curative effort required to provide clear title, computed using a proprietary formula.
A – No monetary encumbrances secured to the property, or all curative documentation has been received. No curative action required. Clear to close. (We love this one!)
B – Property is subject only to permanent exceptions, and voluntary liens. (Think mortgage or deed of trust) Limited curative action required. (Order a payoff or two and we’re good to go!)
C – Property subject to permanent exceptions, and non-voluntary liens. (Think federal tax lien, child support lien, or liens for labor and materials.) Moderate curative action required. (Don’t worry, we’ve got this, but if we have a 30-day close, we need to hustle!)
D – Property subject to access issues, boundary line disputes, court proceedings, or foreclosure action. Significant curative action required. (Don’t despair, we will get this closed. We’re just letting you know that this transaction will require some work, and we need to be proactive in addressing these issues.)
Most often the grade will reflect an A or a B, but when there are sticky issues, we want to shine a bright light on them so there are no surprises as we proceed towards closing. The JetScore™ for a specific property may improve as title issues are resolved during the closing process and are available with just a couple taps on your mobile device. As with our other innovations, you will always know EXACTLY where you stand. Our goal is to get you “clear to close” as quickly as possible so we can deliver on our promise of a drama-free closing experience.
Empowering real estate agents, making their work easier to accomplish, and enhancing their value to buyers and sellers. That’s our mission.