Answering Metro Detroit’s Title Questions
Effective March 1, 2026, the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, is implementing new federal regulations to combat money laundering and illicit finance. Under these rules, title companies are required to collect and report specific identifying information for certain non-financed residential real estate transactions involving legal entities, such as LLCs, corporations, and certain trusts.
While this adds a step for specific types of buyers, our goal at Title One is to ensure your closing remains smooth and secure. For most standard purchases made by individuals or those involving traditional bank financing, the process will remain exactly the same.
If you have questions about how these new regulations might affect your upcoming closing, please reach out to our team!
This regulation primarily impacts buyers purchasing residential real estate without a mortgage (cash, land contracts, or certain hard money loans) through a corporate entity or trust. If your transaction falls under these guidelines, we will need to collect the following prior to closing:
Entity Information: Documentation for the entity (e.g., LLC documents or operating agreements).
Beneficial Owner Details: Names, addresses, and valid government-issued IDs for the individuals who actually own or control the entity.
Seller Information: Relevant identifying details for the sellers will also be collected.
If your transaction requires FinCEN reporting, our team will notify you immediately and provide a secure way to submit the required documentation. Your privacy is a priority; all information is transmitted securely and handled with the highest level of confidentiality.
If you have questions about how these new regulations might affect your upcoming closing, please reach out to our team!
Title insurance is necessary to protect the most important investment you’ll ever make–your home. Since land is permanent and can have many owners over time, others may have acquired various rights in the land, such as utility rights, before you come into possession of it. These previous owners’ title insurance coverage does not cover you as a buyer.
Liens, judgments, and unpaid taxes for which prior owners were responsible may be disclosed after you purchase the property—causing you aggravation and costing you money. In order to transfer a clean title to a parcel of land, it is first necessary to determine whether any rights are outstanding. Title insurance protects you throughout this process.
A title search is a review of all recorded documents affecting a specific piece of property to determine the present condition of the title. These documents include deeds, court records, property and name indexes, and other documents. The purpose of the search is to verify the seller’s true interest in the title and right to sell the property and to discover any claims, defects, and other burdens on the property.
First, a service known as a title search is carried out that describes the condition and quality of the title to the land you are buying. Then, your title insurance protects you against mistakes or threats that might otherwise result in financial loss to you, since problems with real estate are transferred with the ownership.
A title search can show a number of title defects and liens as well as other encumbrances and restrictions. Among these are:
- Unpaid taxes
- Unsatisfied mortgages
- Judgments against the seller
- Restrictions limiting the use of the land
To learn more about title searches and the potential impact of their findings, contact us today.
Financial Loss
- You could be responsible for paying any unpaid liens, taxes, fines, or you could lose your home to an entity that’s come to collect.
Legal Disputes
- You could have to defend yourself in court over ownership disputes.
Difficulty Selling or Refinancing
- Unresolved title issues could make it difficult to sell or refinance. Buyers or financial institutions may be cautious about properties with questionable titles.
Title insurance protects you from these risks for as long as you own the property.
The cost of title insurance is directly related to the value of the property. The higher the value, the more coverage is needed. The premium is small compared to the total purchase price, usually one percent or less of the value of the property. The premium is paid only once and remains valid for as long as the property is owned by the insured.
The title insurance coverage never needs to be renewed. It is valid for as long as you have an interest in the property.
Any individual, corporation, or organization involved in the transfer of title or deed for real estate property will need the services of a title insurance company, like Title One. These services are utilized by:
- Attorneys
- Lending institutions
- Real estate professionals
- Commercial and industrial builders
- Land developers
- Individual home buyers
If you are in need of title insurance services in the Metro Detroit area, contact us today.
Contact Us Today
If you have any other questions regarding the home-buying process in Metro Detroit, the Title One team would be happy to help. Contact us today to learn more about how we can fit into your next real estate transaction. Complete the form below, and we’ll get back to you shortly to further discuss how we can meet your closing, title, and other real estate needs.