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You will have peace of mind
WHEN this long, tedious process is complete and you can begin to enjoy
your new purchase. |
Title insurance is required by a majority of lenders to protect its interest when the lender commits to give you a loan, using the home which you intend to purchase or own as collateral. The lender requires that you purchase a Mortgagee's Title Insurance Policy in the amount equal to the amount borrowed. Each time you re-finance your primary loan, the lender will require a new policy. Additionally, an Owner's Title Insurance Policy protects you as the owner for the amount of the purchase price of the home, for the entire time that you own your home. The policy protects yourself, and your heirs, as long as they have an interest in the property, but it does not cover previous or future owners. A title insurance policy will pay to defend many types of attacks on the title to the property and pay valid claims to protect the banks interest (Mortgagee's Policy) or on your behalf ( Owner's Policy). Title insurance is different than homeowner's insurance. The premium is paid only once for the life of the loan on a Mortgagee's Policy (you must re-apply if you re-finance) and for an owner's policy as long as the property is not transferred, the policy is continually in effect. Additionally, if you re-finance a reduction in the price of the premium is given, if you re-order from Lambert Abstract Company. The issuance of a Title Insurance Policy insures that as the owner, your title to your real estate is free and clear of any possible encumbrances, and that you have clear title from the seller. A title insurance policy insures that you will stand protected from loss or damage as a result of any title defects. COMMON DEFECTS COVERED ONLY BY TITLE INSURANCE...
These risks can and do result in losses to the unprotected property owner. Often the financial loss can be disastrous. It is well worthwhile to investigate the benefits to be obtained through title insurance before you complete a real estate transaction. There are two types of Title Insurance Policies: OWNER'S POLICY The Owner's Policy is issued to the new Owner, guaranteeing the Title to the property they are purchasing is delivered to them without any title defects. LENDER'S POLICY The Lender's Policy is issued when there is a Mortgage Lien to be placed on the property. It guarantees the Title to the property for which they are lending funds, is free and clear of any encumbrances. The Lender's Policy is issued for the amount being mortgaged against the property. IF A LOAN POLICY IS ISSUED, WHY DO I NEED AN OWNERS POLICY? A Loan Policy offers no protection to the landowner. A claim may arise that does not jeopardize the lender's interest, but may, cause a great loss to the owner. WHAT ELSE DO I GET? One of the largest benefits of Title Insurance is the obligation of the insurer to defend your claim against claims of others. A neighbor may claim rights to a portion of your land. Without Title Insurance, you would bear the cost of settling this dispute through the courts, regardless of the validity of the claim. HOW LONG AM I PROTECTED? In one word ... forever. You and your heirs are protected for as long as you or your heirs own the property.
The
major advantage of title insurance is that it protects against loss for
some defects not revealed by a report of title. A report of
title is merely a history of the title as disclosed by the public records. |
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