When it comes to buying a home, it's the unexpected things that create problems. That’s why title insurance is so important. It isn't very well-known among most homebuyers, but it’s key to ensuring a quick and easy process.
What's title insurance?
In the mortgage process, the seller must transfer the legal rights to own, use and dispose of the property in the form of a "title" to the buyer.
Before issuing a transfer, title companies must do a Title Search, checking public records, to verify the seller's right to transfer. The homebuyer's legal right to the property could be challenged if the search finds any of the following defects:
- Ownership by another party
- Errors in the record
- Bad record keeping
- Outstanding lawsuits or liens
- Omitted heirs
- Fraud and forgery
Title insurance is designed to protect homebuyers and lenders from any financial loss, caused by problems like these.
Title insurance comes in two forms: a lender's policy and owner's policy.
Lender's policy – Protects the mortgage lender's security interest for the amount of the mortgage loan. This policy lasts as long as the mortgage lasts.
Owner's policy – Protects the homebuyer's investment in the property for the full value of the property. This policy lasts as long as the homeowner claims the property.
Did you know that borrowers can choose the title company on purchase transactions?
Most borrowers have the ability to shop for title insurance to ensure they are getting the proper coverage at the best price.
What We Do:
HomeTraq provides you with free access to tour homes from the comfort of yours with no obligation and no commitment. Choose from all of the For Sale homes available in the local market. Once you find a home to tour, choose In Person Private Tour or Live Video Tour and choose the date & time. Then sit back and let HomeTraq organize the rest for you!
