Does Your Realtor Inform You About Title Insurance?

The Title Search, The Title Policy & The Loan Policy ~ Do I Need Them When Buying A Home?

What is The Title Search?
After your offer has been accepted, the title company will perform a search on the property to look for any problems with the home's title.  Some simple problems can be corrected before you get to the closing table.  This search typically reviews public records and land records going back many years.  Some problems could be contractor liens, tax liens or IRS liens on the property.

Why Does Someone Need an Owner's Title Policy?
Even though a title search was done on the property before closing, title problems can occur afterwards.  To help protect the new owner, it is recommended that a Title Policy be purchased.  This is a one-time fee paid at closing and usually issued in the amount of the real estate purchase.  Title Insurance protects the owner and their heirs for as long as they have an interest in the property. 

Receiving an Owner's Title Policy isn't always an automatic part of the purchase transaction and, depending on what was negotiated, can be paid by either the buyer or the seller.  If the owner has no title insurance, any problems that are found on the title after closing, could be the complete responsibility of the new owner.

What is The Lender's Title Insurance For?
The Loan Policy is usually required by most lenders if you are getting a mortgage for the purchase of your new home.  This also is usually based on the purchase price of the home.  This policy only covers the lender and not the buyer if there are any problems that are found on the title after closing.  This is also usually a buyer's cost at closing.

Now You Know!
(As always, check with your specific Realtor, Lender, Title Comany or Attorney for your specific situation.)

Check our this link to Capital Title Insurance Agency (A Part of Real Estate One's Team) to get more information about Titlework.

http://www.homeclosing101.org/whyneed.cfm