What is title insurance?
Title insurance is required by lenders to insure passing of good title. This policy provides coverage for title-related risks associated with real estate transactions, including unpredictable or undetectable issues such as forgery, fraud, missing heirs, etc. that can affect rights of ownership. When mortgages are secured, members are required to pay $2.50 per $1,000.00 of monies borrowed in Massachusetts (rate may vary state to state). Members are afforded a discount of $1.00 per $1,000.00 on refinance transactions.
Title insurance provides coverage for certain losses due to defects in the title that occurred prior to your ownership. The seller can give you only those rights that have been previously received by him/her with good title. Title insurance protects against such prior fraud or forgery that might go undetected until after closing and possibly jeopardize your ownership and investment. • WHAT TO LOOK FOR IN A TITLE COMPANY? You should insist on a title company with a stable financial history and an established background in your area. Your insurance has no benefit if your title company isn’t around when you need it. • WHY DO I NEED TITLE INSURANCE? When you buy a home, or any property for that matter, you expect to enjoy certain benefits from ownership. For example, you expect to be able to occupy and use the property as you wish, to be free from debts or obligations not created or agreed to by you, and to be able to freely sell or pledge your property as security for a loan. Title insura
