Numerous entities will participate in and provide services to the purchasers however, the real estate agent, mortgage lender and the title company are the primary participants in the closing of your home. The better this process and the responsibilities of the various providers of services are understood, the more likely we are to relax and benefit from the transaction. For many buyers and sellers it can also be a time of confusion, primarily because many people are not familiar with the closing process. Yet the protection lasts as long as you, or your heirs, retain an interest in the property.Ĭlosing on a home can be an exciting time. You Pay Only Once: There are no renewal premiums, and there is no expiration date on the policy. You need an owner’s title insurance policy to protect your investment. However, this mortgagee’s title insurance policy doesn’t protect you, the homeowner. The Lender’s Coverage: If a mortgage is to be placed on your new home, the mortgage lender will probably require that you purchase title insurance to protect the institution’s position as a holder of a mortgage loan. Your Coverage: Your title insurance protection is a permanent assurance that your ownership and use will be defended against claims at no cost to you, whether the claim is valid or not. Then, your title insurance protects you against mistakes or threats that might otherwise result in financial loss to you include hidden, unknown items. Without the protection of title insurance, you’ll be in jeopardy of losing your investment.Ī service known as a title search describes, as well as possible, the condition and quality of the title you are buying. These are just a few of the problems that can suddenly surface. Defects may include: a forged will or a deed a title transfer by someone under age a married person conveying real estate without his or her spouse fraudulent impersonations invalid divorces, false affidavits. But even the most diligent search of the public records could fail to disclose a number of title defects. ![]() It is a contract of indemnity, meaning a promise to pay you or to take other action if you have a loss resulting from a covered title risk.When you buy a home, you want to be certain it’s safely yours. ![]() Remember, your title policy is insurance. What are some of the hidden defects? Hidden defects can include fraud, forgeries, duress, defective documents, improper signatures, faulty acknowledgements, recording errors, incompetence, incapacity, impersonation, unknown heirs and incorrect tax reports. The lender’s policy protects the lender’s interest only and does not provide protection to the owner. Title Insurance is valuable assurance that every possible potential obstacle to “clear” title has been brought to the buyer’s attention. This one-time premium charge for title insurance provides protection against hidden defects (undiscoverable problems), which may not be discovered by a search and examination of public records. The premium rate and types of coverages are set by the Texas Department of Insurance and is not a negotiable cost. It is the intent of the Department to provide for the protection of every Texas consumer and purchaser of a title insurance policy. The Texas Department of Insurance regulates the issuance of owner’s and lender’s title policies. A title company provides this information for its underwriter by examining public records and issuing a commitment as to the current condition of the title. It is extremely important that the buyer be financially protected against any undisclosed restrictions, liens or other types of claims against the property. A “Title Insurance Policy” insures the owners of real property or others interested against financial loss caused by title risks that are covered. Therefore, laws and regulations have become complex and cumbersome. ![]() ![]() Real Estate has always been considered one of a person’s most valuable assets.
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