Articles
- WHAT IS TITLE INSURANCE? Title insurance is protection for the lender and buyer against hazards on the title of the property which might affect your right to the property.
- Title defects, such as mistakes made In previous deeds, fraud or forgery, or misfiling of documents, inheritance issues or a number of other issues could affect the purchaser’s interest in the property. Title Insurance insures interest in the property as well as the cost for any potential litigation. Even the most detailed and thorough of title searches cannot uncover all of the possible defects that may affect the title to your property. He insurance has a one-time premium, typically paid at the time of the purchase of the property.
- LENDER’S TITLE INSURANCE - The lender has made a large investment in your property. Because of the risk to them should any title defect be uncovered, the lender will typically require that the borrower purchase a policy protecting the lender, as a condition to making the loan. Each time you take out a new loan on the property, you will have to purchase a policy (for instance, each refinance or new loan added to the property requires a new lender’s policy).
- OWNER’S TITLE INSURANCE The policy which you purchase for the lender’s protection does not protect your interest in the property. In order to be afforded such protection, you will need to purchase an owner’s title insurance policy. This policy protects against any title defects for the entire time you own the property. It covers your interest as well as the cost of any litigation required to defend such interest.
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