Buying a new property is not as easy as 1, 2, 3. Getting a title insurance and at the same time using the escrow process for the closing of your home buying transactions are very crucial. You need to understand that getting this type of insurance will benefit you a lot for your property. This secures you from problems in the future. Title insurance gives you the peace of mind. Your investment you have made is safe with it. With this, this article will present some information about the importance of getting a title insurance.
Title insurance is a protection for the property you bought. While buying a property is one of the most important investment you may ever make in your life, it is also a huge loss if it in turns to be inauthentic. Title companies are there to assist you with this stage of your real estate transaction. You can also specifically look for an escrow title company to further look on all transactions about closing your home.
During the process, A lender has to seriously think of ways so that the risk of lending is minimized. Your credit is being checked to make sure that you can pay the loan. The lender can also do additional checking to makes sure the quality of the title of the home you will buy is satisfactory. He will do this by getting a policy of title insurance. Take note that the lender’s policy will not protect you. This is where the owner’s policy is needed and this can be issued at the same time as the lender’s policy for a one-time fee.
When it comes to lawsuits, the title insurance will pay for you and will either clear up title issues or pay or your losses that are insured which are directly connected to the property. An owner’s title policy will be always in effect as long as you, or your heirs, have an interest in the property and this is a one-time premium. Take note that the best title insurance value you can get is the owner’s residential title insurance which is given with a lender’s policy.
A list of situations that a title Insurance protects you:
- False identity of the true owner and fraud
- Forged documents or information and misinterpretations of wills . Like for example, deeds and wills
- Undisclosed or missing heirs and instruments executed have an expired power of attorney or invalid
- Error in documenting paperwork