I Just Paid You for a Title Search on My New Home …
Why do I need Title Insurance in Newburgh NY?
During any closing of Real Estate in Newburgh NY, the attorney will go over all the fees and credits given to the buyer. At this time he tells the buyer exactly what the cost of the Title Insurance Policy will be. As a buyer you might be wondering, “ I thought I already paid for a Title Search? If the job was done correctly, why would I still need insurance?” A great question actually, as it would seem to be a cost that could be eliminated. It is only a one time fee at closing, but with closing costs so high, maybe it could be eliminated. The answer is that mortgage companies all require the buyer to purchase the policy. The reasoning on this is quite logical.
In a perfect world a search would be easy and clear title would be a non issue. This is actually the case for most transactions. Since we don’t live in a perfect world and mistakes are made, having Title Insurance when buying a Newburgh NY home is important. The policy is usually just for the mortgage value, although you are given a choice to increase the number should the value of the home increase. That option is explored with your attorney at closing.
The policy covers any claims to the property after closing. Sometimes it is the fault of the Title Company and other reasons are from what can be unknown at the time of closing. Fraud has been known to happen and the list goes on. These are some of the issues that can come up after closing.
Errors or omissions in deeds
Mistakes in examining records
Liens for unpaid taxes
Liens by contractors
Of course most people don’t ever have an issue, but being the one in million is not something that anyone would want. Even if you don’t have a mortgage on your home it is advisable to have Title Insurance anyway. Penny wise and pound foolish when purchasing such a large investment can cost you big time if something should arise.
When buying your Newburgh NY home it is good to know the process. I hope this answers this question for you. Please contact me when you are ready to buy or sell in Newburgh NY and allow me to help you with all your Real Estate needs.
Janis Borgueta is a Realtor in Newburgh NY. Her blog is about living, working and real estate in The Hudson Valley. If you would like more information about Real Estate in Newburgh NY and Living in the Hudson Valley, please subscribe to this blog.