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Basic
Protection
Buying a new home is the
single largest financial investment for most families
but there are risks. What if the seller doesn’t really
own the home? What if there are mortgages, judgments or
liens against the property? What if the property taxes
have not been paid for several years? Title insurance
protects you against these types of risks and against
the risks of human error. It is your basic home
ownership protection.
Protection
from
Past Events
Title insurance protects
you against future losses arising out of events that
have happened in the past. Unlike other types of
insurance, title insurance is paid when the policy is
issued and is good for the life of the policy. The
premium required is based on the amount of the sale or
the mortgage
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Should
You Forego
Title Insurance?
Buyers can be tempted to
save money by foregoing a title search but the risks are
heavy because title problems are many and varied. Some
typical problems that title searches have uncovered
include a second mortgage on a home that does not appear
to have been paid off. The sellers borrowed money years
ago from a parent who insisted that a second mortgage be
recorded. The loan was repaid but the title wasn’t
cleared. Another typical problem occurs when an owner
had work done on the property but for one reason or
another failed to pay the contractor in full. The
contractor filed a mechanic’s lien on the property and
it has never been removed. These are liens on the
property and if you take title to a property without
clearing these liens or encumbrances, you may be
responsible them.
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Noel Markham
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http://re-agents.net/noelmarkham1
sample2@revalues.com
Phone:
888-814-5347 |
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Two
Types of Title Insurance
A mortgage policy that
insures the lender remains in effect until the loan is
paid off. An owner’s policy insures the buyer and
remains in effect as long as the owner or the owner’s
heirs own the property. An owner policy may cost a
little more than a lender policy. For example, an owner
policy may run somewhere around $3.50 per $1000.00 of
home value while a policy for lender protection may run
in the neighborhood of $2.50 per $1000.00 of home value.
The Title Company
searches and examines public records to determine if any
problems with the title exist. Your real estate agents
works very closely with the Title Company to help clear
up any past clouds that may affect the transfer of title
to the new owner.
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