When it comes to title insurance fees, coverage, and other important policy facts, many homeowners simply don’t know the details. In some cases, the purchasing process can seem so daunting that they skip the important step of securing their investment. In reality, this simple step can save some homeowners many thousands of dollars, making it a worthwhile part of the process that shouldn’t be missed. If you’re thinking about buying a home, read these answers to the most frequently asked questions so you can protect what may be your most valuable asset.
What is title insurance and why do I need it?
In some cases, property owners are shocked to discover that someone else has a lien or some sort of claim on the home they just purchased. By insuring your property purchase, you are protected from third-party claims on the property and will be compensated for any financial damage if necessary.
How is it possible for such outstanding liens or claims to become attached to a property after it is sold?
Property transfers have existed in the United States for over 200 years. In those years, transmissions were repeatedly recorded in books, paper files and now also on computers. Errors are sometimes made when viewing, copying and transferring records. In many cases, such errors are due to human error. Other circumstances arise from fraudulent activity, such as someone claiming to be the owner of a property when they are not the legal owner. Other common problems include unpaid property taxes, a forged signature, or incorrect property descriptions.
How long is a title valid?
It remains in effect and protects your investment in your home as long as you own the property, whether just a few years or several decades.
How much do title insurance fees cost and who pays them?
Title insurance fees vary from sale to sale and depend on the value of the home. In some cases, the seller and buyer share the cost of the policy, but in most cases the responsibility lies solely with the buyer. In most cases, it is included in the closing costs, so the buyer doesn’t have to worry about additional out-of-pocket costs.
How often does a homeowner pay the fee?
These are only paid once when the contract is concluded. For many people, this is the most important investment a homeowner can make when purchasing a new home.
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