Understanding Title Insurance:

  • Basics of Title Insurance
  • Why You Need It?
  • Buyer’s Importance
  • Cost of Title Insurance
  • Lender’s Policy vs Owner’s Policy

Understanding Title Insurance:

What is Title Insurance?

Title insurance protects real estate owners and lenders against any property loss or damage they might experience because of liens, encumbrances, or defects in the title to the property. Simply stated, the title to a piece of property is the evidence that the owner is in lawful possession of that property.

What does it cover?

Title insurance protects against claims from defects. Defects are things such as another person claiming an ownership interest, improperly recorded documents, fraud, forgery, liens, encroachments, easements, and other items that are specified in the actual policy.

Why You Need Title Insurance?

Owning real estate is one of the most precious values of freedom in this country. Title insurance protects your property against hidden title hazards that may threaten your financial investment in your home, thus providing you with peace of mind.

The Creation of Title Insurance and Escrow

How is a Title Policy Created?

After the escrow officer or lender opens the title order, Stewart Title begins a title search. A Preliminary Report is issued to the customer for review and approval. All closing documents are recorded upon escrow’s instruction. When recording has been confirmed, demands are paid, funds are disbursed, and the actual title policy is created.

What is Escrow?

Escrow refers to the process in which the funds of a transaction (such as the sale of a house) are held by a third party, often the title company or an attorney in the case of real estate, pending the fulfillment of the transaction.


Costs Associated with Title Insurance:

How much does title insurance cost?

The insurance commission approves and controls the premiums for title insurance policies. The premiums are paid only once and the cost depends upon the purchase price of the property and the policy amount must be equal to the purchase price.


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