TITLE INSURANCE
We want to make sure the transferring of property is as stress free as possible
When you buy a property, it is essential that you receive clear title to the property. However, not every title defect or flaw can be revealed by investigating public records in a title search. Hence the need for title insurance. In theory, defects should not arise after a title search is performed. Yet there are times in real estate transactions where unexpected complications with the title can jeopardize the rights of buyer or lender, such as
Deed errors or omissions
Issues resulting from death of a prior owner
Forgery or fraud
Mental incompetence
False information regarding marital status
A title insurance policy insures against these or other issues which could not be identified in the search.
Once the property is bought and sold, insurance will cover the loss of a buyer’s or lender’s interest in a property due to certain hidden defects that may otherwise invalidate the title.
Two types of title insurance
Lender’s title insurance policy:
Lender’s title insurance covers the lender for the original amount of the loan against an invalid mortgage that is securing the loan.
Owner’s title insurance policy:
An owner’s title policy is generally issued in the amount of the purchase price of the property. Coverage insures ownership of the property under the present owner for as long as they own the property. For both types of insurance policies, a one-time premium is paid when the policy is issued, and no additional payments are necessary to maintain the coverage.
