Title Insurance ............... Part III
What is title insurance and why does a buyer need it? This question comes up frequently and more than anything a simple lesson in lender’s and owner’s title insurance helps the buyer understand exactly what it is and why it is necessary.
Activerain associate and McCue Mortgage loan officer, George Souto, has written three posts on title insurance. At the end of this post, there are two links to explanations of lender’s title insurance (Part I) and owner’s title insurance (Part II).
This will be the last blog in this series. So far we covered in the first blog the Basic Title Policy also know as Lenders Title, and Owner's Title Insurance in the second blog. This third and last blog I will point out the additional coverage that the Expanded Owner's Title Insurance provides.
The Expanded Owner's Title Insurance provides all of the coverage that the Owner's Title Insurance provided plus the following:
- Insures that the land for a single-family structure is not prohibited by zoning regulations.
- Insures that there are no pre-existing leases, contracts or options to purchase affecting the Homeowner's title or easements on the property.
- Insures that no work or materials were purchased or performed prior to acquisition that a lien may be filed against.
- Insures the Homeowner against lose of title to the property because of a preexisting violation of recorded restrictions.
- Insures against the Homeowner be forced to remove an existing structure on the property because of a zoning violation, or because a building permit was not obtained for the structure.
- Insures that there are no pre-existing violations of any restriction on record which would affect the property.
- Insures that the Homeowner has a legal right of access their property by foot and by vehicle.
Further protects against a loss from:
- A claims by others challenging ownership to the property as a result of forgery before or after the purchase of the property and obtaining title.
- A claim that would cause the Homeowner to lose the property as a result of a pre-existing violation of a restriction.
- A claims by someone else that limits the Homeowner's use of their property because of a recorded restriction.
- Protects the Homeowner if someone else builds on their property.
- Protects against the Homeowner not being able to sell the property because of a violation of a subdivision regulation.
Surprisingly the cost of the Expanded Owner's Title Insurance over the Owner's Title Insurance is very minimal, making it an excellent purchase for the extra protection in my opinion.
Hope this helps those who were not familiar with what each type of Title Insurance Policies covered, and helps you make an informed decision when the time comes.
Links to the previous two blogs:
Title Insurance ............. Part I
Title Insurance ............. Part II
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Who To Call For Your Mortgage Needs In Connecticut:
George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.
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