Purchasing real estate takes a lot more than finding that perfect property.  In fact, the legal procedures and registry investigations may be the most important and tedious part of your transaction.

Regardless of how in-depth your research is before making a decision, unforeseen problems may arise, even many years later, like unknown heirs, false power of attorney or legal restrictions.

In order to prevent economic losses and protect your investment, consider hiring escrow and title insurance services, which will protect your interests from all different angles.  They are complementing services that offer additional protection.

ESCROW

Escrow services are an essential part of international transactions.  In general, foreign investors know little about the environment, stability and security in the market where they intend to buy property.  In a situation like this, they may not feel comfortable depositing money in an unknown jurisdiction, bank, legal firm or unregulated broker.

In order to provide security, escrow services focus on two key aspects: (1) custody of money and documents, and (2) disbursement of funds according to the predetermined conditions.

The three parties involved (buyer, seller and agent) sign a legally binding contract detailing all the conditions for the management of funds, documents and money.  The escrow agent becomes a neutral third party in the process and his only function is to oversee the fulfillment of the agreement.

TITLE INSURANCE

The financial resources and experience of a title insurance company stand behind you and your property when you acquire this service.  The company assumes the responsibility of paying its clients for the losses he may suffer if the rights over the property purchased don't match those specified in the Title Certificate.

As part of the service, the company issuing the insurance carries out a thorough investigation of all documents related to the property, checking its legitimacy and inquiring about liens, encumbrances, mortgages or other restrictions.  However, even after the careful examination and purchase of the property, unforeseen problems may arise, such as unknown heirs and falsified documents.

That is exactly where the coverage of the insurance becomes effective.  It may be through the payment of costs and legal fees, if the owner is forced to defend his legitimate right over the property in court, or compensating him for his economic loss because of the hidden risks.

The service is offered to owners and lending institutions financing the purchase.  It is a one-time payment and is valid as long as the owner keeps the legitimate rights over the property.