If, after closing, you find a lien or defect on your property that pre-dated your ownership of the property, and if it doesn’t fall under exceptions as stated on the policy, then you can file a title claim.
Buying a property is certainly one of the biggest investments in life. To protect your financial investment, make sure to buy title insurance, which protects against hidden title hazards.
Some of the common claims, or risks, covered by a title insurance policy include, forgery and fraud, undisclosed prior mortgage or lien, lack of right to access, lack of competency or legal authority of party, and deed not properly recorded.
Do you know that for a one-time premium, an owner‘s title insurance policy remains in effect as long as you, or your heirs, retain an interest in the property?
Do you know that Title and Escrow is a $25 billion industry in the United States? Each year consumers are charged $15 billion in title fees and $10 billion in escrow fees through the processing of approximately 10 million mortgages.
Who pays for owner’s title insurance? The answer to this question varies from state to state and sometimes from county to county. In about 20 states, it’s the seller’s responsibility, and in another 20 or so states, the buyer is responsible.
In the case of property boundary disputes, the title insurance policy may help you acquire the disputed property on your behalf, pay you for the diminution in value of your property, or pay you the value of the property lost.
Buying a property is a huge investment, and if a dispute arises, the entire process turns out to be a great hassle for the owner. Title insurance provides legal assistance in these cases.
If you are refinancing your home, you will be required to buy title insurance for the bank again. This insurance protects the lender from anything that happened in the past.
What are the different kinds of title insurance policies? There are basically two kinds of title insurance policies: lender or mortgage protection and owner’s coverage.
Owner’s title insurance protects your interests if someone challenges your property’s title. It’s recommended that everyone should buy it, even if it's not required.
Some of the hidden hazards such as defective deeds, fraud and forgery, confusion due to identical names and clerical errors in the records can jeopardize your right to ownership. Title insurance protects against these problems.
Title insurance and home warranties are two different policies. Home warranties offer protection against defects and problems with the home’s major appliances and systems (electrical, plumbing, heating, air-conditioning). Title insurance protects against claims on the property from outside agencies.
A title company ensures that the title showing ownership of a piece of real estate is legitimate, and then procures title insurance for the property, which protects the lender of the property against claims that may arise from disputes.
A title search guarantees that a property is clear of problems and the titleholder is free to sell or deed the property. The title insurance company is obligated to either correct any problems or pay the titleholder for any damages or problems that may exist.
If the previous owner has incorrectly stated his marital status in title records, it can result in a possible claim by his spouse. A title insurance policy can also protect you from issues involving improper marital status.
How is title insurance different from other types of property insurance? While traditional insurance policies cover any losses that may occur in the future, title insurance policy covers actions of the past.
Do you know that a title insurance policy also protects you from conveyances by an heir, devisee or survivor of a joint estate who tries to attain title by fraudulent means?
The “Title Abstract” is the history of a property and its line of ownership. When a title is considered “clear” it means that there are no known outside agencies or individuals laying claim to the property and the transaction can move forward unimpeded.
A homebuyer is not limited to the title insurance company recommended by a real estate agent. By law, a borrower is permitted to procure the services of any licensed firm.
Title insurance is your line of defense against unwarranted claims, or other risks, on the property you are buying. When the title company performs its due diligence, the odds against problems are extremely low, but insurance is needed in case surprise issues crop up.
Title insurance is not only for the buyer. Mortgage providers are entitled to, and should have, title insurance. It serves the same purpose as buyer’s title insurance, except that it protects the lender against loss.
The older a home is, the more likely it is that it has had multiple owners. Because of this, title insurance is vital in that it protects against claims or liens on the property buried deep in its past.
Owner's title insurance, like the name indicates, protects the property owner from title issues arising from claims disputing the ownership of a property being sold. If an opposing claim comes forward and is upheld, the owner is paid in accordance with the terms of the policy.