Do You Have Questions About Title Insurance? Get Answers to Your Basic Questions
You may have questions regarding the closing process if you have never bought a property before, or if you have but didn’t pay close attention to the intricacies of the transaction. We are here at Neighborhood Escrow to provide complete escrow services as well as information on the closing process. We’re going to answer some fundamental questions concerning title insurance today.
What is title insurance and how does it work?
Simply put, title insurance protects property owners and lenders from financial loss or harm that may occur if the property being sold has a debt, encumbrance, or flaw in the title. Every title insurance policy has its unique set of restrictions, exclusions, and terms.
What are the benefits of title insurance for buyers and sellers?
It safeguards you from potential lawsuits arising from title flaws. There are a number of possible title problems to consider. Let’s imagine you bought a house from Person A, only to find out later that they did not truly own it — title insurance would cover you.
A circumstance in which a third party (whether an individual or a business) has a lien against the property is another example. The title insurance ensures that this isn’t the case, therefore if a lien is discovered, the financial burden will fall on the title insurance firm.
Is title insurance the same thing as fire insurance?
No. Other forms of insurance, such as fire, life, and health insurance, are designed to protect you from unexpected disasters. They are paid for in advance, either monthly or annually.
Title insurance, on the other hand, guarantees the past – right up to the day escrow closes. It protects you against occurrences that transpired in the past up until the time of the real estate closing. It is paid for with a one-time premium paid at the closing of escrow.
What are the requirements for purchasing title insurance?
An escrow account must be established. Every lender will require title insurance in order to protect themselves from any title flaws. Even if there is no loan in place, title insurance may benefit all parties involved since it protects everyone and assures the title is free and clear. We have extensive expertise with various forms of escrow and are eager to assist you.
If you’re buying or selling a property, now is the time to engage with an escrow business that knows what they’re doing. We are delighted to bring many years of experience to the table at Neighborhood Escrow.
