There’s a lot we don’t know, but title insurance is absolutely one we do. Often, people don’t understand when or how to get this sort of coverage, or if they even need it. Several things: If you’re purchasing a home, you need it, as a cover for you from any legal issues that transpired prior to your date of purchase. There are also other times you might want to consider this insurance, but we’ll go into this below.
Yes, you should purchase a title insurance policy if you’re buying a home. A clean title is the best defense you have against any undue burden that is left in the wake of a sale, like a mechanic’s lien. Simply put a mechanic’s lien is legal documentation that essentially reserves someone’s right to seek their compensation in the face of non-payment by whoever commissioned them to do work. This would render you without liability in the case that prior owners have such a lien on the property.
When refinancing you’re required to purchase a lender’s title insurance policy to protect your lender for your new loan. However, since you purchased one at the time of your home’s purchase you won’t need to repurchase one, as it lasts so long as you or your heirs own the home.
Title Insurance premiums, how do they work? This policy premium is paid at the time that it is issued, and never again though coverage is continued indefinitely.
… what exactly does “indefinitely” mean? So long as you own the property, even after in case someone makes a claim against you based on a warrant in the deed you signed at the time of your home’s sale.
Do Lender’s title policies expire? They actually do! The day you pay off your loan and it’s released, or your home goes into foreclosure. If your loan is sold to another lender, the new lender is also covered by the policy. The title insurance policy follows the holder of the loan.
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