What is Title Insurance?
Do I Need to Purchase Title Insurance for My Franklin TN Home?
What is Title Insurance?
What is Title Insurance?
Title insurance is a form of indemnity insurance. It protects homeowners and lending institutions against financial loss from defects, liens or other matters found in the title of real property. Title insurance also insures against fraud associated with title ownership, forged deeds, mistakes made in public records that aren't found before the sale, inaccurate wills or trusts and missing heirs who may appear claiming to own the property. Title insurance safeguards a buyer from title errors or perils that could threaten the financial investment made during the purchase of a home or property.
There are two types of title insurance--owner's and lender's.
An owner's title insurance policy certifies that the buyer has the right to the property. It covers the cost of any legal fees that are incurred if you have to defend a claim.
An owner's title insurance policy certifies that the buyer has the right to the property. It covers the cost of any legal fees that are incurred if you have to defend a claim. The cost of title insurance is based upon the price of the home or property. The title policy is issued at closing and paid by a one-time fee at the time of settlement. Coverage lasts as long as you own the home or property.
A lender's title policy protects a bank or mortgage company from incurring a financial loss due to a dispute over who owns the property. Just like your lender requires homeowner's hazard insurance, they also require title insurance. The lender's title insurance ends when the mortgage is paid in full.
Do I Need to Purchase Title Insurance for My Franklin TN Home?
For buyers in Williamson County Tennessee, the seller typically pays for the purchase of title insurance. Make sure when you sit down with your real estate agent, you specifically ask for this in the contract. Otherwise, you may end up paying for it.
A lender's title policy protects a bank or mortgage company from incurring a financial loss due to a dispute over who owns the property. Just like your lender requires homeowner's hazard insurance, they also require title insurance. The lender's title insurance ends when the mortgage is paid in full.
Do I Need to Purchase Title Insurance for My Franklin TN Home?
For buyers in Williamson County Tennessee, the seller typically pays for the purchase of title insurance. Make sure when you sit down with your real estate agent, you specifically ask for this in the contract. Otherwise, you may end up paying for it.
Home buyers usually pay for title insurance when purchasing a new construction home and, maybe even, when buying a foreclosure. While you are not required to purchase an owner's title insurance policy, I would strongly advise against not having it. Like many types of insurance you carry, you probably will never actually have to use it. However, in the event that someone appears claiming your home is theirs, you'll be happy you purchased it.
For assistance purchasing your Franklin TN home, contact Tammie White today at (615) 495-0752.
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