Be it a domestic space or a commercial office space, buying a real estate property is always a dream come true. Especially if it is a home that you are purchasing after a lot of planning and savings, the emotional levels are naturally high. But what if after you purchase, someone knocks on your house and says, ‘Hey, this is my property!’ The next thing you know is the court proceedings to fight the case out. You certainly wouldn’t want that to happen. This is where title insurance comes to help. When you buy a property you are given full title to the property with all the legal rights. But the possibility of an error in the deed/mortgage or the chances that the lender doesn’t really own the property is higher. At such instances, Title insurance comes to the rescue. It offers you the status of the land before purchase, and defends you against any title claims that occur later.
Types of Title Insurance:
- The Lender & Policy
- The Owner & Policy
- Title search offers legal
When the lenders issue you a loan, most of them would require a lender’s policy. This is based on the actual dollar amount of the loan. This will protect the lender’s investment in case of any unseen issues that arises with the property. The policy amount gradually decreases and ceases once the loan is paid off. Now this is only for the lender’s interest and it only safeguards him/her. It offers no protection to the owner’s equity in the property. This is where the Owner’s policy comes into picture.
Usually the lender advises on the owner’s policy when the transaction is talked upon. Even if the lender doesn’t, it is the duty of the owner to make sure the owner’s policy is in place. It is issued based on the amount of purchase of the real estate. There will be a one-time closing fee that you would be paying which covers you for the rest of your life, safeguarding you or your family who share the interest in the property. The owner’s policy will also protect you from any hefty legal fees incurred in defending the claim later if an issue arises.
Significance of Title Insurance:
It is important to know the significance of Title Insurance.
- Critical need:
- Affordable and cost-effective:
- Risk prevention:
- Complete protection:
- Peace of mind:
Title insurance is no more a want but a critical need to any property buyer. Because, according to the American Land Title Association, almost 25% of property transactions show an issue found and fixed. Now that’s a number you don’t want to be in. Title insurance naturally belts you up against this trouble.
Unlike other insurances that have to be paid quarterly or monthly, Title insurance is a onetime closing fee which will cover you for the rest of your life.
Unlike other insurance policies that handle risk assumptions, Title Insurance clearly offers risk prevention as everything is calculated to the last decimal and you pay an exact amount that will safeguard your property against title claims.
However extensive the title search might have happened, there is always a possibility for a sudden error and a distant third party coming in and challenging the title ownership. Only a Title Insurance can offer you the complete protection, covering you till the legal fees of the title defend.
As much as the piece of land you buy, it is the peace of mind that allows you to enjoy it fully. Title insurance offers you that.
It is always good to have an expert support when it comes to Title Insurance to understand the little knacks of it and make sure you are fully covered. At Indus Abstract Services LLC, we have just the right set of experts who advise you at the right time with the right info to carry out the Title Insurance related matters successfully. Reach out to us for a free consultation. We love conversations.