By Adrian Bates
What’s Title Insurance? What’s there to Know About Title Insurance?
U
nlike other types of insurance, which protect against potential future events, title insurance safeguards a real estate property’s past events. It safeguards both the mortgage lender and the homebuyer from title difficulties that arise during or after the property ownership transfer following the title search. Coverage for title insurance starts when the policy is purchased and continues forever into the past, covering both known and undiscovered irregularities in the documented history of ownership. THE SIGNIFICANCE OF TITLE INSURANCE The purchase of title insurance from a lender is a requirement of the mortgage procedure. However, as a homeowner, it’s often a smart idea to purchase title insurance. In a variety of situations, title insurance can reimburse you for damages or legal fees. It is a safeguard against; WWW.THEPOWERISNOW.COM
• Liens and easements on the previously unreported land • Transfers of ownership rights in the property that have been forged • Unintentional errors in document recording or filing • Any additional title problems that existed before your policy’s start date • Ownership disputes, such as an unknown heir PROCESS OF HOW IT WORKS An abstractor, also known as a title agency, does a title search on behalf of the buyer by reviewing public records and legal documents to identify any concerns with the home’s title. This includes unpaid debts from past owners, as well as unpaid homeowners association fees, taxes, and heir claims. The title agency attempts to remedy these difficulties before providing a quote for a title l
127
