When purchasing a home or real estate, you might be thinking “What exactly is title insurance and why is it important”? In real estate, title is a person’s ownership right to their property. When purchasing property, it is important to purchase title insurance as well. Title insurance will protect the property owner and lender in the event that a claim is made on the property. Let’s say someone tries to make a claim of ownership on the property or there is an issue with prior liens, you will be covered with this policy.
There are two different types of title insurance: an owner’s policy and a lender’s policy. A lender will typically require you to get a lender’s policy in order to protect their financial interests. An owner’s policy is optional; however, we highly recommend our clients purchase this policy to protect their property rights.
Unlike most other insurances, instead of paying a monthly or annual premium, you only have to pay the premium once. This onetime payment is made at the time of closing and will provide you with coverage for as long as you have title on the property.
With today’s tough market this is just an additional safeguard when making one of the largest purchases of your life. This one time payment is worth your peace of mind for the years to come.
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