FAQs
FAQs
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What is Title?
Title is the concept of legal ownership that entitles a person to possess and use a property subject to limitations imposed by regulation or by prior owners.
What is the difference between a deed and title?
The deed is the physical document that is evidence of ownership while title is the legal concept of ownership.
What is Title Insurance?
Title insurance is a contractual obligation that protects against losses that occur when title to a property is not free and clear of defects (e.g. liens, encumbrances and defects that were unknown when the title policy was issued).
Is Title Insurance the same as Homeowner’s Insurance?
No. Title insurance provides coverage against loss due to liens and defects on title. Homeowner’s insurance provides coverage for loss damage on the physical property itself.
Is Title Insurance Necessary?
Yes! Title insurance serves as a crucial safeguard against potential financial loss arising from disputes over property ownership rights, Despite thorough title searches, hidden defects may emerge, making title insurance indispensable. In addition to covering financial losses, title insurance also covers the expenses associated with defending against any valid claims.
Is Title Insurance required by the Lender enough?
Maybe. There are two kinds of title insurance, a Lender Policy and an Owner’s Policy. A Lender policy is designed to protected a Lender’s interest by ensuring a valid lien on the property. Although many Lenders require this kind of insurance and pass the cost on to the borrower, it may not fully protect you.
An Owner’s policy is designed to protect you against title defects that pre-exist the issuance of the policy. Defects such as these include improper estate proceedings, pending legal actions or lien not properly released that post significant risk your equity. An Owner’s Policy will cover financial losses for a valid claim up to a policy’s face amount (often the sales price) as well as the expense of defending your title in legal proceedings.
What is the cost of title insurance?
The one time premium for title insurance correlates directly with the value of your home. The expense is paid just once, at the time of purchasing your home and it provides continuous and comprehensive coverage for as long as you retain ownership of the property.