What is title insurance and why do I need it?
Before you purchase a property or close on a new loan, it’s essential to know that the title to the property will be free and clear, free of prior defects and indebtedness. A homeowner and prospective lender need to be certain that what is available on the property is what is referred to as a “marketable title”. A title company researches the legal history of the property which entails searching public records in the offices of the county recorder. Problems with the title could threaten the mortgage, limit ones use and enjoyment of the property and could result in financial loss. A policy of title insurance protects a homeowner’s title and the insurer covers the cost of any legal challenges. All lenders require a title insurance policy before they will fund your loan.
Before you purchase a property or close on a new loan, it’s essential to know that the title to the property will be free and clear, free of prior defects and indebtedness. A homeowner and prospective lender need to be certain that what is available on the property is what is referred to as a “marketable title”. A title company researches the legal history of the property, which entails searching public records in the offices of the county recorder. Problems with the title could threaten the mortgage, limit ones use and enjoyment of the property and could result in financial loss. A policy of title insurance protects a homeowner’s title and the insurer covers the cost of any legal challenges. All lenders require a title insurance policy before they will fund your loan.
• We at A-1 Title & Escrow would like to take a moment to inform you of some of the procedures and requirements you will encounter as a Seller or Borrower. In most counties, it is the responsibility of the Seller/Borrower to provide at closing, a Title Insurance policy on the contracted property. • Title Insurance affords protection from past events which may or may not be a part of the public records, but that can adversely effect a new owner’s interest in the property being sold to them. • Title Insurance protects against matters of public record, plus hidden title defects, such as fraud, forgery, incompetence or missing heirs, that even the most diligent title search may not discover. • Some states closely regulate rates. Others permit open competition, often resulting in significant differences between title insurers on rates and coverage. Depending where you live, it pays to investigate your options carefully in order to obtain the most complete coverage.
Title insurance is NOT your homeowner’s insurance. Title insurance protects the new homeowner from unforeseen or unknowable title defects and encumbrances. You need title insurance to protect your investment. In the event that a mortgage or another person claims a superior interest to your own, we as your agent, are able to help solve that problem.
