What’s title insurance? What’s there to

By Adrian Bates

What’s Title Insurance? What’s there to Know About Title Insurance?

Unlike 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; • 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

insurance policy; nevertheless, if there are too many, the firm may deny providing coverage. Once the title is clear, the property ownership is transferred to the buyer. Finally, the buyer is responsible for the lender’s title insurance.

TYPES OF TITLE INSURANCE

Lenders title insurance- protects a buyer’s lender from claims and liabilities that may arise as a result of your property mortgage. Owners are required to purchase on their behalf by lenders. This is included in the closing costs for the homeowner.

Owner’s title insurance -protects homeowners from any legal complications that may occur in the future. It is an optional fee that is paid by the property buyer or seller. ”An owner’s title insurance policy protects your house, which is likely to be the largest single investment you make in your life,” explains Marissa Boyle, owner of Millennial Title Partners in Charlotte, North Carolina. ”This coverage protects your property rights for as long as you own it for a one-time cost.” However, title insurance is not mandatory in private or cash transactions. The seller’s warranty of title ensures that the home buyer has complete ownership of the property and that there are no outstanding claims or liens against it. If there are issues, the buyer has the option of pursuing legal action against the seller.

HOW MUCH DOES TITLE INSURANCE COST?

It differs from other types of insurance in that it is a one-time payment made after the escrow rather than a monthly or yearly payment. The premium is typically between 0.50 and 1% of the home’s value. The most essential factor in the cost of both lender and optional homeowner policies is location because each state holds title insurers to various standards. In most cases, mandatory lender’s title insurance costs between $500 and $1,500, depending on how much money you’re borrowing on your house mortgage whereas, optional homeowner’s title insurance costs between $700 and $2,000, depending on how much money you’re borrowing on your home mortgage. The cost of title insurance can be increased by larger loan amounts, smaller down payments, and lower credit ratings. While skipping homeowner’s title insurance can save you money, the policy never expires and can protect you from problems that arise long after you sell the house and move on. A lender’s title insurance policy can be purchased from any title company of your choice. You are not obligated to use the company recommended to you by your lender or real estate agent. Shop around for a company with better offers, best coverages, or even lower costs.

Just like the home contingencies, title insurance should be an essential part of any real estate investor. It is the best way to have peace of mind in your homeownership journey with complete awareness that your investment is protected from the past, present, and future title uncertainties. There are many title insurance companies in California and, you deserve the best. Head on to The Power Is Now Media Inc. and find out your best company choice. Contact Adriana Bates a VIP agent or, Eric Lawrence Frazier for your overall home investment safeguarding tips.

ABOUT ADRIAN BATES

Adrian Bates graduated from Cal State University with her B.A. in Psychology (Business Management minor) in 1980. The former aerospace contract negotiator became a real estate sales agent in 1985 and then a broker in 1990. In April 1995, property sales across America were on a serious downturn, yet a young and determined Adrian Bates opened A-1 Realty in Los Angeles, CA. With her fortitude and divine help from God above, her team two grew into a team of eleven agents by November 1996. To find out more about Adrian, go to https:// thepowerisnow.com/adrian-bates-2/

References

https://www.ucop.edu/loan-programs/resources/consumer-information/titleinsurance-in-california.html https://www.bankrate.com/mortgages/what-is-title-insurance/ http://www.firstam.com/ownership/videos/what-is-title-insurance https://www.ucop.edu/loan-programs/resources/consumer-information/titleinsurance-in-california.html

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