Buying a new house or real estate property is the most valuable thing in life. When buying a property, you need assurance that the property is completely yours without any restrictions.
For this, you can get the help of a commerce title company to get the guidance on title insurance. The legal title insurance is issued after carefully examining your all public records. You should get the help of reo asset management companies whenever buying a new property or house. Title insurance eliminates the risk of faults in the title.
Why the property sellers need title insurance?
Any kind of property purchase needs proper evidence to ensure that the property investment does not include any title defect. Title insurance acts as a guarantee to the buyer that the property is free from defect. It means that you are selling a clear title without any legal issues. This assures the buyer that is entirely protected from any type of risk of loss and trouble from the deal.
Why the buyer requires title insurance?
If there is no title assurance of the property then it means that the buyer is not completely protected from the risk of loss. There can be any issues related to public records, mistakes in the title examination, and hidden defects as well. This means you have to hold completely accountable for any claims and judgments that may arise against the property you bought. Under this situation, the title insurance will help to defend you to cover the claim of the policy.
What is the cost of title insurance?
The cost of title insurance varies from company to company and set according to the property you bought. The insurance companies control the premiums for the insurance policy. You have to pay the premiums for one time only. Cost mainly depends upon the price of the property.
What protection you will get from title insurance?
Protection will be provided against all these issues:
- Undisclosed heirs
- Deeds by minors
- Forged deeds, releases, mortgages, wills, and other documents
- False affidavits of death
- Probate matters
- False impersonation of the property owner
- Rights of divorced parties
- Deeds by persons falsely representing the marital status
- Adverse possession
- Errors in tax records
Lender policy and Owner Policy
Lender’s policy protects the lender against any loss occurring from title defects. This policy is also known as loan policy and mortgage policy.
The owner’s policy protects the buyer from any loss occurring from ownership fault. The owner’s policy provides complete protection from financial loss. It also makes the payment of legal costs for defending the title against a claim. It also makes payment of successful claims up to the cost covered by the policy.
On the Ending Note
Make sure that you choose a good and reliable commerce title company to get proper guidance on the title of the property. Compare different reo asset management companies to find the best one for your needs. This will help you a lot in avoiding legal troubles.