A B L O G TITLE INSURANCE; WHAT YOU SHOULD KNOW Safety, this is our top priority in everything that we do. The habit of cleaning and sanitizing our hands after going out, using public bathrooms, touching things that have possibilities of bringing bacteria. The rising question is, why do we do this? Putting it simply, we want to be safe from any form of disease. This is our way of minimizing the risks in our health. In doing business and buying things, we don’t just simply pay the price, we also want security and assurance when acquiring it and this is our way of minimizing possible risks when purchasing or buying real estate. This is where title insurance plays a great role. What is Title Insurance? When purchasing real estate, title insurance shields you from issues through an ownership title. These issues include things such as; property taxes which are still unpaid or in pending; fraud or forgery on prior documentation; or a spouse or unidentified heir who asserts ownership which could have existed before the transaction. Is it necessary? As stated in the earlier part, Title Insurance protects you and your lender from the risk that your seller or prior sellers did not have free and clear ownership of the home and property and, as a result, were unable to legally transfer complete ownership to you, title insurance is essential for homebuyers. Title insurance shields you from events that occurred before you received the title to the property, protecting one of your most significant financial assets which can be your home or business. It makes no difference whether you are purchasing a commercial property for your company or a residence for you and your family. You should be aware of how crucial it is to comprehend what title insurance in real estate is, what it means for you, and what advantages it might provide. T I T L E I N S U R A N C E I N R E A L E S T A T E There are two types of insurance that might be covered in this however these two are distinctive. Indeed, homeowners insurance and title insurance are two different kinds of insurance. Homeowners insurance serves as protection for your house/home from damage both inside and exterior and theft, as well as your liability for harm or death caused to third parties while they are on your property. On the other hand, you are shielded from any issues with the property's title by title insurance. We should also remember that title insurance is often required by lenders and that you only need to pay the title insurance premium once , at the time you purchase the property. Although having an owner's title insurance coverage is typically optional, experts strongly advise that any prospective home buyer do so. It responds to allegations of title flaws that existed before your purchase of the property. As long as you are the property's owner, the policy is in effect. Until the loan is repaid or refinanced, lenders often don't want to take anything for granted and want to defend their interests. Therefore, if you are a lender, you should ask the borrower to get a lender's title insurance coverage to protect you against any possible damages should there be issues with the formal transfer of ownership rights. W H A T I T C O V E R S Even if a title company checks all of these scenarios before granting or providing you a title insurance, there are still instances that something might suddenly appear out of nowhere or in the midst of the contract. The expense of defending against or resolving a prospective claim would be covered by the owner's title insurance policy, up to the value of the property. In the event of an ownership dispute that prevents the new owner from successfully transferring the title of ownership rights, the lender's title insurance protects against any losses that the lender might incur. Liens resulting from incomplete contractor payments, unpaid homeowner's association dues, or other outstanding debts Documents that have been altered or fabricated, as well as other fraud - related problems Infringements Ownership disputes, such as those involving an unidentified heir