Title Insurance Protects Your Biggest Investment
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Buying a home will likely be the largest investment you make in your lifetime. So before you sign on the dotted line, you must be sure that the property's title is free of other claims.
Determining that your rights and interests to the property are clear is the business of a title company.
You pay the title company a single premium which includes the cost of verifying clear title and covers you in case some fault is later discovered in the title.
The title insurance company searches the property's title history. The title company can usually identify any title problems that may arise and clear up these problems prior to closing.
Because Real Estate Law is so complex, you need an expert to make sure that all previous transactions have been correct, so you don't end up with legal problems or a problem selling your property. Your owner's policy will describe the property and outline any recorded limitations on your ownership. It will also cover what the title company is responsible for. Title insurance usually covers:
- Contested title — Someone, usually a previous owner or occupant, claims they still own the property or have not given up their claim. If this happens, the title company will defend your title at no expense to you.
- Defective title — "Defective title" covers any number of problems with the title to your home. It can even include a "contested title". Other examples of title defects include problems with legal access to the property, easements that make the property less usable, unusable, or unsaleable. Many other complex problems define "Defective title" or "Clouded Title." The title company will discover these problems, or should they miss them, protect you from financial loss - up to the amount of the policy.
Carter Financial Solutions can walk you through the pitfalls of getting a mortgage. Give us a call: 866-840-8745 x2.