5 Things You Need To Know About Title Insurance

Buying a new home is great and exciting but there"s more to it than just finding the right home at the right price. Today, we"ll try to expand further on the thing called title insurance. What is title insurance? Why do you need title insurance for your home? What can title do for you as a property owner? With the help of our resident real estate expert, let"s all discuss the details on today"s article.

Title Insurance Defined

Basically, title insurance ensures that the title of your home-to-be is free of any issue or legal claims. A title gives you an opportunity to own and sell a particular property which makes it quite crucial to be free of any unwanted issues. To be clear, this is not your home insurance so, it doesn"t cover any damages done at your home.

Title Search and Uncovering Dirty Secrets

A title search is defined as an examination of all documents that is related to the ownership, history and condition of the property to find out any underlying issues. Not doing a title search could compromise your whole dream of acquiring your own home. An experiences title service company can conduct a title search to uncover hidden and dirty title claims you would be willing to avoid. On of the claims that you might is ownership claims. You can never be sure if the title or the sale is legit and you might find yourself losing the property to an unexpected owner of the property. Some people might pose as the owner and trick you in the process of buying the house but a title search can protect you from such instance.

Two Different Policies to Understand

There are generally two type of policies that protect the interest of two different people. If you plan to get a mortgage loan, you might be required to get a lender"s title insurance which protects the lender from any issues regarding your acquired property. If you want to protect your rights as a homeowner, then you would more likely acquire an owner"s title insurance which can give you protection as long as you own the property.

You Only Pay Once for a Owner"s Title Insurance

If you"re concerned about the cost of an owner"s title insurance, you might feel relieved for the fact that it only includes a one-time fee. Coverage of the policy lasts until you hold an interest in the property. On the other hand, loan policies are ineffective once the loan has been paid off.

Taking Title or Registering the Title

There are common ways to taking title which can depend on whatever situation you"re in:

  • Sole Ownership – If you"re single, you would hold the title in your name alone.
  • Tenants in Common – Each tenant owns a specific percentage in the property which they can share or pass on to their heirs.
  • Joint Tenancy with Rights to Survivorship – Tenants equally own the property and upon the death of one, the other gets full ownership.

If everything still seems to be a blur, you can definitely ask your title insurance professional for more details about how can title insurance do much benefit on your behalf.


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