Let’s go over a few things that are important to know about getting title insurance and what the process is actually like: Once you’re under contract on a home, you’ll need to buy title insurance. As far as title insurance there are two types of policies: Owner’s Title Insurance and Lender’s Title Insurance. The lender’s policy covers the financial institution that holds your mortgage for the loan’s amount. The owner’s policy gives coverage equal to the amount you are paying for the property if an issue is discovered, or a claim is made after a title search is completed. Your title insurance company also provides legal assistance and pays all valid claims. Protection is provided as long as you own your home. The title investigator looks into public records and other land records spanning decades, searching for any issue that could arise as a claim against your ownership. Historically 1/3 of title searches uncover some kind of problem. Those issues could be but are not limited to unpaid contractors, failure to pay state and local taxes, forgery, mistakes or omissions in the deed, conflicting wills, and undisclosed owners or heirs. The review conducted to ensure a clear title and sifting through past documentation will provide you with a full picture of the ownership status of your home. It will also tell you that the seller has the right to sign any and all documentation that then puts the home and its ownership at your feet. Once these hurdles have been jumped, and you’ve signed all the documentation and are living in your new home you should keep the title safe, you can place it in a safe deposit box in the bank. Placing it in a safe space, where you have access if necessary is the best idea, that way you know that if you need it the title will be available. If you ever happen to lose your title, or cannot find it, there is a copy that is filed with your County Clerk of Courts, where you can ask for a copy of it from the county clerk’s office.
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