When you purchase a home, one of your ancillary expenses will be a title search and title insurance. Title insurance is the best protection against unforeseen legal problems in the future that can impact your ownership of property. The title insurance company can help uncover any defects in the chain of title to ensure that the purchaser takes ownership free and clear of any undetected or fraudulent claims that may arise.
There are two types of title insurance and you generally need both to ensure that you are adequately protected: lender’s title insurance and homeowner’s title insurance. A buyer must purchase a lender’s title insurance policy if he is financing the purchase. Most lending companies require that the purchaser obtain title insurance to obtain a mortgage. This policy only covers claims of title against the lender for the outstanding amount of the loan when the claim is made. In addition. the lender’s policy is only valid during the term of the loan that was insured. Therefore, if you refinance your home, the loan expires and a new loan will be instated. This loan will require a new title policy as well.
A homeowner’s title insurance policy is generally recommended since the policy purchased by the lender does not provide any security for the buyer. A homeowner’s policy ensures that the interests of the buyer are safeguarded both at purchase and for the duration of ownership of the property. The policy certifies that the property is free of liens and claims other than those identified in the policy. Although an owner’s policy is not required, it can provide peace of mind and help protect your investment.
There are several types of owner’s policies. A standard policy provides coverage up to the purchase price of the property. An enhanced policy covers any inflation that has occurred during the life of the policy. An enhanced policy also covers liens that are filed subsequent to the closing date. Standard policies only pertain to liens that were filed and placed on the home prior to the completion of the purchase by the new buyer.
The experienced team of attorneys at the Law Offices of Mark Weinstein, P.C. can help you litigate your real estate claims. Contact Mark Weinstein and his colleagues at (770) 888-7707 or visit them at https://www.markweinsteinlaw.com to find out how they can advise you.