What is Title Insurance?


The title insurance policy protects the financial interest in a property. Two types of title insurance policies are available: the lender’s title insurance policy and the owner’s title insurance policy.

In most of the cases, the lender, in order to protect their investment, will always require a lender’s title insurance policy. The insurance policy fee is part of the closing costs. This fee is always reflected as a lender charge on the closing disclosure.

The owner’s title policy is optional. This policy is not required in order to purchase a home. However, professionals from the title insurance company, Riverside Abstract, recommend the purchase of this policy, in order to prevent any financial losses to the new home owner from previous home ownership.


Why is Owner’s Title Insurance important?


There are many options to be considered by the homeowners, when it comes to keeping their homes safe and secure. So, many homeowners choose to install smoke alarms, deadbolt locks, and home security systems as important lines of defense to ensure their peace of mind.

An Owner’s Policy of Title Insurance is considered to be an optional protection to homeowners who choose to provide an added layer of security and protection.

“Your home may be new to you. However, every property has a history,” say experts from Riverside Abstract. According to them, there may be hidden issues in the chain of title which could affect your ownership, including:

• Errors in Public Records

• Unknown Liens

• Illegal Deeds

• Missing heirs

• Forgeries

• Undiscovered Encumbrances

• Unknown Easements

• Boundary/Survey Disputes

• Undiscovered Will

• False Impersonation of Previous Owner

What does Title Insurance protect?


The Owner’s Policy protects your investment as long as you or your heirs own the property.

Title insurance agents from Riverside Abstract claim that the title insurance company, at its own expense, will defend the title and will pay losses within the coverage of the policy if they occur.

Title insurance is a one-time premium which is paid at the closing of the transaction. This is different from other insurance models, where premiums are paid on an ongoing basis.

What is A Real Estate Title Search?


A title search in real estate is the process of verifying the home seller’s right to transfer property ownership to someone else.

During the title search process, any claims, errors, assessments, debts, any type of liens, any title deficiencies, and any restrictions that may be outstanding on the property are examined.

You might have the property sold out from underneath you without even knowing it, or may never be able to resell it. As stated by the agents from the title insurance agency, Riverside Abstract, this can be more common than you think. However, it won’t be a problem if you are covered by a good title insurance policy. In case someone tries to dispute your use or ownership of the property, title insurance gives you legal standing, protection, and assistance.

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