April 30, 2019
You Really Need to Know This About Title Insurance Policies
For many, the internet acts as a great resource. Just about everyone uses it for searching for recipes or even playing doctor. However, truth be told, it’s not always reliable. When it comes to understanding title insurance policies, you should speak to an experienced real estate attorney.
All things considered, that advice may puzzle you for a second. After all, title agencies handle many residential real estate settlements here in Pennsylvania. That said, they will be the first to tell you that they can’t offer you legal advice.
Consider this situation. After saving up a down payment for years, you and your husband are ready to buy your first home. You plan on financing only fifty percent of the purchase price.
Not surprisingly, the mortgage lender wants to ensure their part of the investment is properly covered. Your loan is contingent on the purchase of a Title Insurance Lender’s Policy. You are expected to show proof of coverage for the amount of the loan.
In the meantime, you’re investing a considerable sum of your hard-earned cash. It’s not just the lender who needs protection. As an owner, you need coverage for the unfinanced balance of the real estate investment.
Title insurance serves to protect buyers and lenders against several issues. It’s the reason that title agents perform due diligence title searches prior to agreeing to provide coverage.
Things happen. Seemingly out of nowhere, missing heirs could claim they missed out on their share of the property when it was sold to you. By the same token, it’s entirely possible that title searches inadvertently miss liens.
Once again, a lender’s title insurance policy protects the mortgage company. You need more.
Owner’s Title Insurance Policy
Truth be told, title insurance relieves plenty of headaches that can surface after you close on your home. Missing liens and missing heirs are just a couple of issues. Unfortunately, it’s not so uncommon for a chain of title to be broken. You may feel utterly defenseless.
An owner’s title insurance policy gives you assurances that if defects in the property come up, you are protected. In some states, the seller pays for the policy. Unlike other types of insurance, you only pay a premium for title insurance once at settlement. You don’t have to worry about monthly payments.
Have questions about your real estate purchase or title insurance? Contact Mazzoni Karam Petorak & Valvano to see how we can assist you.