Real Estate Myths: Fact, Fiction, or Absolutely Not?

Let’s play a little game!

We are throwing some of the most common real estate myths on the table and deciding whether they are fact, fiction, or an absolutely not. Because if there is one thing we have learned, it is that buying or selling a home comes with plenty of advice.

• Some of it is helpful.

• Some of it is outdated.

• And some of it sounds like it came from your cousin’s friend who bought a house once in 2007.

So, grab your coffee and let’s bust a few real estate myths.

Welcome to MythBusters meets Title Talk.

Myth #1: “The title company and Realtor do the same thing.”

Verdict: Absolutely Not

Your Realtor and your title company are both important members of your real estate team, but they have very different jobs.

Your Realtor helps guide you through the buying or selling process. They can help with pricing, negotiations, offers, contracts, inspections, and getting you from “I think I want to move” to “Where do I sign?”

Your title company focuses on the ownership side of the transaction. At Celebration Title, that includes researching the property’s title history, identifying potential issues that could affect ownership, coordinating the closing process, handling the transfer of funds, and helping make sure the paperwork is in place for a smooth transfer of ownership.

Think of it like this.

• Your Realtor helps you get to the closing table.

• Your title company helps make sure you understand what is happening when you get there and helps move the transaction toward the finish line.

Same team - Different jobs - Both important!

Myth #2: “I don’t need title insurance because the house is new.”

Verdict: Fiction

A newly built home may be brand new; however, the land underneath it is not!

Even if no one has ever lived in your home before, the property itself has a history. That history could involve previous owners, liens, unpaid taxes, easements, recording errors, or other issues connected to the property.

That is why title research matters! Title insurance is designed to help protect against certain covered title issues that may not be discovered before closing. So, just because your house has that fresh paint smell does not mean there is no history behind the property.

New house? Possibly.

New land history? Definitely not!

Myth #3: “Closing is just signing papers.”

Verdict: Fiction

Yes, you will sign documents and probably quite a few of them, but closing is much more than a stack of papers and a pen.

Before closing, there is a lot happening behind the scenes. The title company works to prepare for the transfer of ownership and coordinates with the people involved in the transaction.

At the closing table, the documents help finalize the sale, transfer ownership, address loan requirements when applicable, and document the transaction. And while signing can feel like the final scene of the movie, there has been a whole lot happening before you ever sit down at the table.

The good news? You do not have to walk into closing knowing every answer to every question.

That is why you have a team.

• Ask questions.

• Take your time.

• And never be afraid to say, “Can you explain that one more time?”

We love a good question!

Myth #4: “Once I get the keys, there can’t be any surprises.”

Verdict: Absolutely Not

Getting the keys is a big moment!

• Cue the happy dance.

• Take the photo.

• Call your family.

• Start planning where the couch is going to go.

But homeownership can still come with surprises! Some surprises are small, like realizing the previous owner apparently had 47 shades of beige paint in the garage. Others can be more serious, including issues that were not immediately obvious. This is one reason why having the right professionals involved before and during closing matters.

A real estate transaction has a lot of moving pieces. Inspections, surveys, title work, insurance, financing, and property history can all play a role. The goal is not to promise a surprise-free life after closing - If only we had that kind of power.

The goal is to help you go into your transaction informed and prepared.

Myth #5: “The title search is just a formality.”

Verdict: Absolutely Not

A title search is an important part of the closing process. It involves researching public records connected to the property to identify potential issues that could affect ownership or the ability to transfer title.

Depending on the property and its history, that research may uncover things like:

• Existing liens

• Unpaid taxes

• Easements

• Recording errors

• Questions about previous ownership

• Other matters that may need to be addressed

Not every property has a complicated history, but when an issue does appear, it is better to discover it before everyone is gathered around the closing table.

Think of the title search as doing your homework before making one of the biggest purchases of your life. Not exactly glamorous, but very important.

Myth #6: “The seller handles everything at closing.”

Verdict: Fiction

Closing is a team effort.

Buyers, sellers, Realtors, lenders, title professionals, attorneys when involved, insurance professionals, and other parties may all have responsibilities during the transaction.

Every closing looks a little different depending on the details of the sale. That is why communication matters so much. One missing document or unanswered question can slow things down.

At Celebration Title, we believe a smoother closing starts with keeping the right people informed and helping everyone understand what comes next. Real estate is not a one-person show. It is more like a group project where everyone is very motivated to finish.

Myth #7: “Title insurance and homeowners insurance are the same thing.”

Verdict: Fiction

These are two different types of protection that serve different purposes.

• Homeowners insurance generally helps protect against certain future losses or damage to the home and property, depending on the policy.

• Title insurance is different. It is connected to the ownership and title history of the property and may provide protection against certain covered title issues.

One protects against certain things that may happen to the property while the other is connected to certain issues involving rights to the property and its ownership.

Different purpose - Different coverage - Both worth understanding!

Myth #8: “If there is a problem, the title company will just figure it out instantly.”

Verdict: We wish

Some title issues are simple while others take time. If a potential issue is discovered, resolving it may involve tracking down documents, contacting the appropriate parties, paying off a lien, correcting a recording, or taking other necessary steps. The important thing is that identifying an issue before closing gives everyone the opportunity to address it.

This is another reason the work happening before closing matters so much. The earlier questions are answered, the better prepared everyone can be.

The Bottom Line: Real Estate Has Enough Myths Already

Buying or selling a home is exciting!

It can also be confusing, and unfortunately, there is no shortage of real estate myths floating around.

The best thing you can do is ask questions, work with professionals you trust, and avoid making important decisions based solely on something you saw in a comment section.

At Celebration Title, we believe understanding the closing process should not require a dictionary, a law degree, or thirteen cups of coffee! We are here to help make the process easier to understand and to guide you through your part of the journey. So, the next time you hear a real estate “fact,” feel free to ask: Is that fact, fiction, or absolutely not?

Have a question about title, closing, or the real estate process? Reach out to us. We are always happy to help you better understand what happens between contract and keys!

FAQs

1. What does a title company do during a real estate transaction?

A title company helps research the property’s title history, identify potential issues that could affect ownership, coordinate the closing process, handle funds, and prepare for the transfer of ownership.

2. Do I need title insurance for a newly built home?

A newly built home can still sit on property with a long ownership history. Title insurance may provide protection against certain covered title issues connected to the property that are not discovered before closing.

3. What happens at a real estate closing?

Closing typically involves reviewing and signing documents, completing financial requirements, and finalizing the transfer of ownership. The exact process can vary depending on the transaction.

4. Can title issues be discovered after closing?

Some title issues may not be discovered during the title search. Title insurance can provide protection against certain covered title issues, subject to the terms and conditions of the policy.

5. Should I ask questions before closing?

Absolutely. If something about your transaction or closing documents does not make sense, ask. Your real estate team is there to help you understand the process.