Buyers get title insurance when they purchase a home or condo to ensure that the property in question is free of any liens or other problems with the title. Lender services require that buyers get title insurance to protect the lender, but they should also purchase it for themselves. During escrow, information about the title can be crucial if there are unforeseen problems such as claims to the property from heirs to the previous owner, and insurance protects against this.
When buyers begin get into escrow, information affecting the title must be obtained and dealt with before closing. Lender services obviously want their buyers to get this information, which insurance title companies help to uncover and deal with, so they title will be transferred to their borrower and hey can begin receiving mortgage payments. Rest assured that title problems arise all of the time, and this insurance is well worth the couple hundred dollars.
Here are just a few of the problems that title insurance protects buyers and lender services against:
* Divorce – Both spouses need to sign off on the sale to get a free title, or you may become part of the divorce proceedings.
* Estate Sales – If you are purchasing a house as part of an estate sale, the heirs may be trying to sell the residence without including other heirs out of spite. You could get involved in a lawsuit in this situation.
* Ingress and Egress Issues – This is when the title to a property is so messed up that the owner doesn’t have the right to enter or leave because they would be crossing another person’s property, and something must be worked out with the neighbors.
Before closing escrow, information about situations like these would surely come in handy.
![[Valid RSS feed]](images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
