Buying a Starter Home

Buying a Starter Home

Buying Real Estate? What You Need To Know About Title Insurance

Capucine Leroux

Insurance is an important part of daily life for most Americans today.  The average adult may have insurance policies to provide financial protection against major losses relating to health, traffic crashes, liability issues, loss of life and more. Like these other types of insurance, title insurance can help to protect lenders and buyers from financial losses, but many real estate buyers may not fully understand just how important this type of coverage really is. If you are preparing to purchase any type of real estate, these timely facts will help provide the information you need. 

Title insurance comes in two types 

Title insurance is split into two main types of coverage. The first type is the lender's policy, which protects the lender's interest in the transaction. Lender's policies are usually a mandatory requirement for real estate purchases that include a mortgage.

Since the lender's title insurance policy offers no protections or benefits for the buyer of the home or property, an owner's policy can be purchased, as well. Although buyers are not mandated to purchase an owner's policy, most should opt to do so in order to protect themselves against claims on their property's title. 

Title insurance offers a wide range of protection

Mistakes and omissions that may have occurred during any current or previous property transaction can damage a lender who holds a mortgage on the property or an owner who paid to purchase it. Some of these include misspelled or incorrect information, improperly filed records, and improperly probated wills. Title insurance coverage protects owners and lenders from these problems, as well as those relating to forged documents, missing heirs, and problems relating to previous foreclosures proceedings and incorrect public records information. 

Title insurance has strict purchase requirements

Unlike most other types of insurance, title insurance does not require periodic premiums to be paid. Instead both the lender's and owner's policy is purchased for a one-time amount whenever a property is first purchased or refinanced. 

Title insurance for lender's is typically paid for by the purchaser of the property. Owner's policies can be paid by either the buyer or the seller, depending upon the customs of the area in which the transaction is occurring and the agreed upon terms of the real estate purchase contract. 

To learn more about title insurance and how it can benefit your ownership experience, buyers should always take time to discuss their situation with their real estate professional, such as at Springfield Realty Group of Keller Williams. By doing this, they will be assured of getting location-specific information regarding customs, price, and coverage. 


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About Me
Buying a Starter Home

When my husband and I got married, I immediately expected to move into my dream home. However, my budget wasn’t large enough to fulfill all of my wishes for a new home. So, my husband and I decided to move into an older brick ranch home. Although the house needed several updates, it was built well. It also had plentiful closet space. Over the years, my husband and I have completed a few renovations that have made the home more enjoyable to live in. If you’re considering purchasing your first home, you may not be able to afford every item on your must-have list. A real estate agent can help you prioritize this list and find a suitable home for you. On this blog, you will discover the benefits of hiring a real estate agent to help you find your perfect starter home.

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