6 Questions to Ask About Title Insurance
Mortgage lenders and property buyers are protected against the problems with a title, which may arise when there is a transfer of property ownership. The title insurance company may pay the legal damages, specified in the policy if a title dispute arises during a sale. When issuing title insurance, the title insurance agency, or attorney researches the records in order to make sure that the property title is clean, that there are no undisclosed heirs to the property, unpaid taxes, pending legal action, errors, fraud or other problems with the deed. To put it simple, it will be verified if the seller really owns the property and is free to sell it. “A title or public record defect, that’s fixed before the transaction closes, is revealed in one out of every three searches,” says Joe Altman, spokesman for Riverside Abstract , a title insurance company, based in New York. After it is checked that the title of the property is clean, an underwriting company is contracte