How many different insurances are there with home purchases... home insurance, title insurance, mortgage insurance? In my last article, I shared information about Mortgage Insurance, which is in place to protect the lender. In this article, we will talk about Title Insurance, which is in place to protect the buyer.
Owner's title insurance is one of those items often misunderstood by homebuyers at closing, yet its value is tremendous. When a property is financed, bought or sold, a record of that transaction is generally filed in public archives. Likewise, records of other events that may affect the ownership of a property, like liens or levies, are also archived.
Owner's title insurance is a policy that protects homebuyer's property rights. For the same reason the bank requires a lender's insurance policy, the homebuyer obtains owner's title insurance to protect their legal claims to the property.
It may be hard to understand what the home owner is being protected against. One could be if a home owner purchased a new home from a builder and the builder failed to pay the roofer. In order to seek payment, the roofer may file a lien against the property. Without owner's title insurance, the homeowner would be responsible for paying this existing debt. This is just one example of how owner's title insurance protects homebuyers from various significant risks.
Even the most skilled title professionals may not find all problems associated with a property, though. Some risks, such as title issues due to filing errors, forgeries, or undisclosed heirs, are difficult to identify. So after the title company finishes its searching, it also provides a title insurance policy that will help protect you from a variety of issues that might be uncovered later.
NOTE: If you take out a mortgage loan when you buy your property, your lender will require a loan policy of title insurance. This protects the lender's interest in your property until your loan is paid off or refinanced. On the other hand, an owner's policy of title insurance insures your ownership rights to the property. Even though you'll pay for this policy only once, your coverage will last as long as you own your home.
The good news is that owner's title insurance protects homebuyers legally and financially as long as they and their heirs own the home. For a one-time fee, homebuyers can rest assured, know they are protected against existing debts or claims against their property.
NAPLES REAL ESTATE BLOG
This section will not be visible in live published website. Below are your current settings:
Current Number Of Columns are = 2
Expand Posts Area =
Gap/Space Between Posts = 7px
Blog Post Style = card
Use of custom card colors instead of default colors = 1
Blog Post Card Background Color = current color
Blog Post Card Shadow Color = current color
Blog Post Card Border Color = current color
Publish the website and visit your blog page to see the results
©2019 All Rights Reserved
The source of this real property information is the copyrighted and proprietary database compilation of the © 2020 M.L.S. of Naples, Inc. and © 2020 Renee Hahn, Realtor, William Raveis Real Estate. Accuracy of this information is not warranted or guaranteed. Information should be independently verified if any person intends to engage in a transaction in reliance upon it.
Our Web site Accessibility: We are committed to providing an accessible web site. If you have difficulty accessing content, have difficulty viewing a file on the web site, or notice any accessibility problems, please contact us to specify the nature of the accessibility issue and any assistive technology you use. We will strive to provide the content you need in the format you require.