As a title company, we know that title insurance is crucial, and while most insurances are future-facing and preventative this isn’t the case for this sort of insurance. Most insurances are designed to protect you, financially, if something happens. Title insurance is meant to protect you if the property you’ve bought had an owner who left it to his cat, Mr. Morton, in the will, and it is found years after your real estate transaction. We have a few easy notes that will give you a basic insight into title insurance. For starters, “title” refers to the ownership of a piece of property in its entirety, including all previous title transfers and liens. The legal document that transfers a title is the deed. If you’re purchasing a property the title and deed, go from the seller to you, the buyer. This can only happen if there are no issues with the title. These “issues” are liens, deeds that are forged or incorrectly filed, prior claims from unknown heirs, encumbrances or property accessions, and unpaid property taxes or mortgages. There are two types of title insurance, an owner’s policy, and a lender’s policy. The owner’s policy is optional, but highly recommended, and protects a buyer’s ownership interest in the property if a past title or ownership issue were to arise. The lender’s policy protects the lender in the event a past title, or ownership issue were to arise, this coverage is typically required. The American Land Title Association estimates that your title insurance price will be between 0.5-1% of your property’s total purchase price. At Gables Title Group we’re always ready to simplify your title insurance process when you purchase or refinance your real property.
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