Good Morning. I liked Janna's Q and A post today about Title Insurance. I know a lot of my clients apprieciate this kind of information. Make it a great week everyone!
Janna Rankin Scharf, GRI, CLHMS, SFR, AB
Coeur d'Alene Idaho Real Estate
From time to time I receive a question that makes me realize that much of what we in the business understand is really quite foreign to much of the general public. The questions I received about title insurance is just one example.
What is Title Insurance?
When you are buying a piece of property, a title insurance policy is an insured statement about the ownership, or interest in, a piece of property. During the period of due diligence between making an offer and closing on the deal, the title company will do a search and examination of all recorded documents that pertain to the property. This search will show liens, easements and any other recorded interest or ownership of the property.
This title search ensures that all parties have a clear understanding of their interest before the transaction is completed. It allows us to resolve any clouds that may appear on the title. Once you have purchased a property with a title insurance policy, if a claim against the property arises in the future, the cost of your defense against those claims will usually be covered by the title company.
How Much Does it Cost?
The cost, or premium, depends on the type of coverage to be provided, as well as the purchase price of the home. This is one insurance policy where you will only pay the premium once.
Who Pays for Title Insurance?
In Coeur d'Alene, it is customary for the seller to provide a title insurance policy to the buyer. Buyers are required to provide a title insurance policy to their lender if obtaining a mortgage. The cost of that policy is customarily paid by the buyer. Yes, there are two policies. One covers the buyer for the full amount of the purchase price. The other covers the lender for the amount of the mortgage.
How Long Does Title Insurance Last?
Title insurance remains in force for as long as you own that piece of property. In the case of a lender's policy, the title insurance remains for the duration of the loan. The exception is if an assumable loan, where the original loan remains insured.
There are other types of title policies and reports. The title officers at any of our exceptional title companies would be happy to discuss your needs and answer your questions about title insurance.
Janna Rankin Scharf provides a superior level of real estate services to home buyers and sellers in Coeur d'Alene and Kootenai County, Idaho. Visit www.JannaScharf.com to search for homes in the Coeur d'Alene MLS for anywhere in spectacular North Idaho.
No matter how grand or modest your real estate dreams may be, you can turn to me in confidence. Give me a call today and let me know what I can do to be of service to you!
Janna Rankin Scharf AB, GRI, CSP, CNS, CLHMS 208.651.9700