If you are purchasing a property, in most cases, it is required that you purchase title insurance. It is one of the most important steps for protecting your assets and ensuring that when you buy real estate or any type of property, it is worth what you are paying for it. Title insurance is there and can protect you from any potential problems or issues with title. A title agency like MacGregor Abstract can help you with this.
Title insurance is an important element in real estate purchases because it protects purchasers against legal challenges to their title. Common challenges include claims to ownership by another party or encumbrances on the property such as easements or other rights limiting the use of the property. The policy reimburses the insured for losses resulting from these challenges if they successfully defend their ownership rights in court.
There are several kinds of title insurance, and the most common is an owner’s policy. This protects you against defects in your title that would prevent you from selling or refinancing your property.
Location is also a factor and will determine whether or not title insurance is necessary. If you live outside a metropolitan area, where there is little commercial or industrial development, there is less chance of title problems. There are fewer chances that the previous owners could have had an interest in the same land you are buying.
If you live in a metropolitan area, especially one which has a large amount of commercial and industrial development, be sure to purchase a policy on your home. These areas are more likely to produce situations where the previous owners’ interests may affect your title.
Title insurance protects you against loss that may occur if a defect is found in the title to your property.
Your home and land are the largest investments you will ever make. And, like any investment, there are risks involved. The most important step you can take to protect yourself from these risks is to purchase a homeowner’s policy of title insurance. Without it, if problems with your title or deed arise after you have purchased your home, you could lose all or part of your property.
Inserted into the public records of your county is an official description of the boundaries of your property and an official record of all past transactions affecting the property. This record is called the “deed” and it is kept by the local government office called the “Register of Deeds.”
But this deed itself only gives you a fraction of assurance that your land really belongs to you. The most important document that verifies ownership is called a “title,” which is a detailed history of all transfers of title in your property since it was first created. In most counties, these records are divided into two parts.
Title insurance, or title insurance policy, is a contract between an insurance company and the owner of a property that guarantees the owner’s peace of mind. The policy protects against loss that may result from defects in the title to the property, such as liens, easements and claims.
Title insurance is important to have for real estate transactions and is purchased by homebuyers and lenders. This coverage protects the buyer from losses due to defects in the title that cannot be discovered by a title search (in other words, any type of legal claim that can affect the ownership of the property).
There are two types of title insurance policies: lender’s policies and owner’s policies (or “all-risk” policy). The lender’s policy insures the collateral or mortgage loan security. The owner/buyer’s policy insures the homebuyer against loss due to defects in the title not discovered in a title search. Title insurance provides coverage if someone else claims an interest in your property through a lien or encumbrance or makes a legal claim to your property through adverse possession.
Lender’s Title Insurance
Lender’s title insurance covers the lender against loss if there are problems with your property that are not uncovered by a title search at closing.