Title insurance is a type of indemnity insurance mainly found in the United States which insures the people against financial losses from any defects in title that may be present in the public records at the time they acquire that property. If someone opts for this insurance, it protects the mortgage lender's interest against any liens on the property or anyone claiming a share in the ownership. Title insurance agencies investigate the property to ensure that any such claims are acknowledged before the sale closes. As, the decision to buy a home or a real property is the biggest and most important financial decision of our life, so do not forget to take title insurance policy for the property. After taking this insurance policy no one will have liens, claims, or encumbrances on your property.
At the time when you take a property, title defects can exist in many ways such as errors or omissions in deeds, mistakes in examining records, forgery, undisclosed heirs, missing heirs, liens for unpaid taxes, liens by contractors, etc. A title insurance agency checks for these defects in your title by investigating public records like mortgages, deeds, wills, divorce decrees, tax records, court judgments, liens, encumbrances, and maps. They find out that who really owns the property, determines the outstanding debts against it, and the exact condition of the title. Until the acquisition is complete, they handle property closings and hold the property transactions money in a trust account.
Title insurance is a contractual commitment that protects us against financial losses that arise when title to a property is not free and not clear from any defects. The terms of the policy describe the covered risks and the risks that are excluded from coverage. The title insurance agency will refund the amount for losses that are covered. This insurance is effective from the issue date of the policy and covers defects prior to the ownership. These agencies issue policies on all types of personal and real property. Lender's policy and an owner's policy are the two common types of title insurance policies.
Some title insurance agency offer discounts for title insurance such as senior citizens discount, for first-time buyer discount, discount for certain professions, etc. These companies may also offer discount when both a lender's policy and an owner's policy are purchased concurrently from the same company. Discounts usually vary from 5% to 30%. However, all companies do not offer all discounts. The amount of the discounts, accessibility of discounts and the applicability of the discounts may differ by company.
At the time when you take a property, title defects can exist in many ways such as errors or omissions in deeds, mistakes in examining records, forgery, undisclosed heirs, missing heirs, liens for unpaid taxes, liens by contractors, etc. A title insurance agency checks for these defects in your title by investigating public records like mortgages, deeds, wills, divorce decrees, tax records, court judgments, liens, encumbrances, and maps. They find out that who really owns the property, determines the outstanding debts against it, and the exact condition of the title. Until the acquisition is complete, they handle property closings and hold the property transactions money in a trust account.
Title insurance is a contractual commitment that protects us against financial losses that arise when title to a property is not free and not clear from any defects. The terms of the policy describe the covered risks and the risks that are excluded from coverage. The title insurance agency will refund the amount for losses that are covered. This insurance is effective from the issue date of the policy and covers defects prior to the ownership. These agencies issue policies on all types of personal and real property. Lender's policy and an owner's policy are the two common types of title insurance policies.
Some title insurance agency offer discounts for title insurance such as senior citizens discount, for first-time buyer discount, discount for certain professions, etc. These companies may also offer discount when both a lender's policy and an owner's policy are purchased concurrently from the same company. Discounts usually vary from 5% to 30%. However, all companies do not offer all discounts. The amount of the discounts, accessibility of discounts and the applicability of the discounts may differ by company.
Source...