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Title Insurance is Not Required By Law but it is Required by Most Lenders

Title insurance protects property buyers and mortgage lenders against defects or problems with a title when there is a transfer of property ownership. The legal term “title” refers to the rights of ownership. A title grants a person or persons exclusive use, possession, and transfer of ownership rights for a given real estate property. The premium cost is a one-time fee that you pay at the time of escrow closing.

Possible title defects include

  • Errors in public record
  • Uknown liens
  • Illegal records
  • Missing heirs
  • Forgeries
  • Undiscovered encumbrances
  • Unknown easements
  • Undiscovered wills
  • False impersonation

Before issuing a title insurance policy, title companies check for defects in your title by examining public records such as deeds mortgages, wills, divorce decrees and others. In contrast, homeowners’ insurance insures your house and contents and provides coverages for losses due to fire, lightning, theft, vandalism, and personal liability claims brought against you. Title insurance protection is effective as of the issue date of the policy and covers defects arising prior to your ownership.

 

If you are purchasing or just recently purchasing a home, let Uniamericainc.com help you today!