Title Insurance
When you buy a home, you want to be certain it is safely
yours. However, even the most diligent search of the public
records could fail to disclose a number of title defects.
Without the protection of title insurance you could be in jeopardy of
losing your investment.
There are two basic types of title insurance protection - one for the
mortgage lender and one for the home owner.
If a mortgage is to be placed on your new home, the mortgage lender
will probably require that you purchase title insurance to protect the
institution's position as a holder of a mortgage loan. But
the lien holder's title insurance policy does not protect the home
owner. You need an owner's title insurance policy to protect
your investment.
You pay only once. There are no renewal premiums and there
is no expiration date on the policy. The protection lasts
as long as you, or your heirs, retain an interest in the property.
An in-depth title search is required before purchasing title
insurance and this expense is one of the closing costs of the loan.
If you purchase your owners title insurance at the closing
table
you do not have to pay for another title search. Also, most
attorneys will allow you to purchase a policy based on the mortgage
lenders title search up to 30 days after closing.