Do You Need Title Insurance ?
Thursday, June 18, 2009 Add a comment
Buying a home is one of the biggest investments you’ll make. You’ll want to protect it with title insurance when you buy the house.
Obviously, if you own the property, you have strong rights to it. But others may have rights too, through liens, unpaid taxes, etc. Even if you know nothing about these risks, as a homeowner you are still vulnerable to such claims on your property.
Title insurance, which protects against claims on your real estate by others, requires that certain risks be eliminated before the policy takes effect. It then cover hidden risks thereafter. If you have go to court in regard to your property, the title insurance company will pay for your legal counsel.
That’s why we use a title company during the escrow period when you buy a home. They will check the title and make sure problems are cleared up prior to closing escrow.
The cost of title insurance is usually less than 1% of the cost of your home. In some counties it’s customary that the buyer pays for it, and in other areas, the seller may pay it. Check with me for a list of those counties.
Furthermore, there are two policies for each transaction. One covers the buyer and the other covers the lender.
For other title questions, feel free to contact me.
