Title Insurance for Your Peace of Mind
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The biggest investment you will make in your lifetime will probably be purchasing a home. So before you close, you need to know that nobody else can claim the property.
A title insurance company ensures that your new property won't surprise you with encumbrances and other legal obstacles.
You pay the title company a single premium which includes the cost of verifying clear title and covers you in case some fault is later discovered in the title.
The title insurance company searches the title history of the property. The title company can almost always find any title problems and have these problems cleared-up before you close on the property.
Because Real Estate Law is so complex, you need an expert to make sure that all previous transactions have been correct, so you don't end up with legal problems or a problem with the title to your property. Your title insurance owner's policy will describe the property and outline any recorded limitations on your ownership. It will also set forth the title insurance company's responsibilities should any claim covered by the policy terms arise. Title insurance covers the following:
- Contested title — This usually happens when someone who owned or even lived in the home before you claims to still hold an interest. In this case, the title insurance company will defend the title at no expense to you.
- Defective title — "Defective title" covers any number of problems with the title to your home. It can even include a "contested title". Other examples of title defects include problems with legal access to the property, easements that make the property less usable, unusable, or unsaleable. Any number of other complicated problems define "Defective title." The title company will discover these title problems, or should they miss them, protect you from financial loss - up to the amount of the policy.
Community Trust Lending Team at Norcom Mortgage-NMLS ID#71655 can answer questions about title insurance and many others. Call us at (203) 526-9345.