What is title insurance and do you need it?
Here we discuss four key points about title insurance:
1. Understanding Title Insurance
When you buy a home, a title search is conducted to identify any potential issues with the property's title. However, even a thorough search can miss certain defects or claims. This is where title insurance steps in to provide an additional layer of protection. Title insurance protects both buyers and lenders from any defects or legal disputes related to the property's title. It offers financial security and peace of mind by covering any unforeseen issues that may arise, even after a comprehensive title search.
2. Lender's Title Insurance
If you are obtaining financing for your home purchase, your lender will likely require you to purchase a lender's title insurance policy. This policy safeguards the lender's investment in case any title-related problems emerge.
3. Owner's Title Insurance
While not mandatory, an owner's title insurance policy is highly recommended. It protects you as the homeowner, covering legal expenses and potential losses due to undiscovered defects in the title. It offers an added layer of security and peace of mind for your investment.
4. Cost of Title Insurance
The cost of title insurance varies, typically being a one-time fee based on the purchase price of the property. In some instances, the seller may cover the cost of the owner's title insurance policy as part of the closing costs. It's important to discuss the specifics with your real estate agent or title insurance provider. While title insurance is not legally required in all cases, it is highly recommended due to the protection and financial security it provides. By obtaining title insurance, you can safeguard your investment in the property and mitigate the risks associated with potential title defects or disputes.
Hope this guide was helpful! Please do not hesitate to contact me at 647.930.1888 or email info@timsold.com for all things real estate.
