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Title Insurance

    What is title insurance?

    Title insurance is a type of insurance that protects the buyer or lender of a property from financial losses that may occur due to defects in the title. A title defect is an issue with the legal ownership of a property, such as a lien, judgment, or unpaid taxes.

    Why do you need title insurance?

    Title insurance is important because it can protect you from financial losses that may occur even after you have purchased a property. For example, if it is later discovered that there is a lien on the property, the title insurance company will pay to remove the lien. Or, if someone else comes forward claiming to own the property, the title insurance company will defend your ownership of the property.

    How much does title insurance cost?

    The cost of title insurance varies depending on the property value and the location of the property. In general, title insurance costs between 0.5% and 1% of the property value.

    What are the different types of title insurance?

    There are two main types of title insurance: lender’s title insurance and owner’s title insurance. Lender’s title insurance protects the lender in case there are any problems with the title after the loan is closed. Owner’s title insurance protects the buyer in case there are any problems with the title after the purchase is complete.

    Is title insurance required?

    Lender’s title insurance is usually required by lenders before they will approve a mortgage loan. Owner’s title insurance is not required, but it is a good idea to purchase it to protect your investment.

    How do you get title insurance?

    You can purchase title insurance through a title company. The title company will conduct a title search to look for any defects in the title. If the title search is clear, the title company will issue a title insurance policy.

    Is title insurance worth it?

    Title insurance is a relatively inexpensive way to protect yourself from financial losses that may occur due to defects in the title. If you are buying a property, it is a good idea to purchase title insurance to protect your investment.

    Here are some additional things to keep in mind about title insurance:

    • Title insurance is a one-time purchase. Once you have purchased a title insurance policy, it will remain in effect for as long as you own the property.
    • Title insurance does not cover all risks. There are some exceptions to coverage, such as fraud or forgery.
    • You should read the title insurance policy carefully to understand what is covered and what is not covered.

    By understanding what title insurance is and why it is important, you can make an informed decision about whether or not to purchase it.


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