When it comes to title insurance rates, coverage, and other important policy information, many homeowners simply don’t know the details. In some cases, the act of purchasing may seem so daunting that they may skip the important step of securing their investment. In reality, this simple step can end up saving some homeowners many thousands of dollars, making it a valuable part of the process that shouldn’t be missed. If you’re thinking about buying a home, read these answers to frequently asked questions so you can protect what may be your most valuable asset.
What is title insurance and why do I need it?
In some cases, homeowners are surprised to discover that someone else has a lien or claim of some kind on the home they just purchased. By insuring your property purchases, you will be protected from claims others make on the home and, if necessary, you will be reimbursed for any financial losses.
How can these types of liens or outstanding claims become attached to a property after it has been sold?
Property transfers have been taking place for over 200 years in the United States. In those years, transfers have been recorded and rerecorded in books, paper files and, now, on computers. Sometimes errors are made when viewing, copying, and transferring records. In many cases, these types of errors can be attributed to human error. Other circumstances arise from fraudulent activity, such as someone acting as the owner of a property when they are not the rightful owner. Other common problems include unpaid property taxes, forged signatures, or incorrect property descriptions.
How long does a degree last?
It remains in effect and protects your investment in your home for as long as you own the property, whether for a few years or many decades.
How much are title insurance fees and who pays them?
Title insurance rates vary from sale to sale, depending on the value of the home. In some cases, the seller and buyer split the costs of the policy, although more often it is considered the sole responsibility of the buyer. It is usually included in closing costs, so the buyer does not need to worry about an additional out-of-pocket expense.
How often does the owner pay the fee?
These are paid only once, when the policy is chosen. Many people consider this to be the most important investment a homeowner can make when purchasing a new property.
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