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Title Insurance

Title insurance provides coverage for certain losses in the title that may have occurred prior to your ownership. It protects against claims resulting from various defects such as prior fraud or forgery that might go undetected until after closing, including liens, encumbrances, and defects that were unknown when the title policy was issued and may possibly hurt your ownership or investment.

What protection am I receiving with a title policy?

A title insurance policy contains provisions for the payment of the legal fees in defense of a claim against your property, which is covered under your policy. It also contains provisions for indemnification against losses, which result from a covered claim. The premium is paid through escrow at the close of the real estate transaction. Title insurance is a one-time charge and there are no continuing premiums due, as there are with other types of insurance.

How much does Title Insurance cost?

Your title insurance policy is based upon the purchase or sales price of your property, usually less than 1% of the purchase price. It is a one-time premium, paid at the close of escrow. The important thing to remember is that you only pay once. The coverage continues in effect for so long as you own the covered property.

Who pays for Title Insurance charges, the buyer or the seller?

That depends… it’s a negotiable item in the purchase contract. The premium for a title insurance policy can be paid by the buyer or the seller or split between both parties. However, it’s customary for the buyer to pay the lender’s portion of the policy premium, assuming they are getting a loan.

Why does a Lender require Title Insurance?

Lenders require title insurance as a condition for your loan. Two types of policies are available, an owner’s policy and a lender’s policy. A lender’s policy insures that the lender’s security interest in the property has priority over claims that others may have in your property. The lender’s policy covers only the amount of its loan, which is usually not the full property value. In the event of a claim, the lender would ordinarily not be concerned unless its loan became non-performing and the claim threatened the lender’s ability to foreclose and recover its principal and interest. An owner’s policy insures the buyer for as long as they own the property and protects owners from claims by others against their property.

Who is the best Title Insurance company?

Ask your Realtor at The Tim Wood Group. They’ve built strong relationships with the best title insurance companies in Big Bear.

More About Title Insurance;

  • Frequently Asked Questions about Title Insurance… « propertyguiding – What is a title examination, or title search? Title examination is the most important phase of a real estate transaction. The examination determines whether the title is marketable. It informs the Purchaser and the Lender if the …
  • Why Do You Need Title Insurance? In Plain English – The Phoenix … – Why do you need title insurance? It’s the second most asked question in our office. The most asked question is – When do we get the keys? That was discussed in an earlier post here at TPREG.com. Let’s start with the official …
  • Title Insurance: The Basics – I have often found that many homebuyers lack a fundamental understanding about title insurance. While most past clients have admitted to briefly discussing the topic with their real estate agent, they don’t seem to understand its purpose or function only that it will be an additional expense on the settlement sheet for which they are responsible. Title insurance is a policy of insurance that protects against losses arising from defects in and/or claims against the title to property.

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