Financing a Home... Do I need Title Insurance!

By
Real Estate Agent with Crye-Leike Realtors

OWNER'S TITLE INSURANCE

 

What is owner's title insurance?

Owner's title insurance provides you with protection against the loss of your home caused by somebody in the future finding a defect in your title.  Unlike other types of insurance that protects against losses from future events, title insurance provides protection from past events, which may or may not be a matter of public record.

What if I don't have owner's title insurance?

If a problem with your title occurs and you don't have owner's title insurance, you could lose everything you've invested in your home or face expensive legal costs.

 How does owner's title insurance protect me?

If someone initiates a claim against your title, having owner's title insurance provides you with a legal defense and, if your title should fail, reimbursement of the equity in your home up to the face amount of your policy. It also covers attorney's fees. In short, owner's title insurance protects you against losing your investment in your home.

Doesn't lender's title insurance protect me?

No. if there is a complete failure of title; you have no protection and would lose both your property and your equity in the property. The lender requires you purchase lender title insurance as part of your loan.  If you choose not to purchase owner's title insurance and a problem arises the lender is the only one protected.

What if my attorney reviews the title?

No matter how extensive the title search may be, the possibility of "hidden risk", although rare, remains.  Real estate titles have hazards that even the most competent attorney can not discover - hidden defects such as improper indexing of records, forgery of documents, unknown or missing heirs, and more (see list below). The attorney cannot be held liable should you suffer loss because of any hidden title defects.

How much does owner's title insurance cost?

The basic premium rate for owner's title insurance is approximately $1.00 per $1,000 more than lender's insurance. That means the owner's insurance premium for a $115,000 home is only $115 more than lender's insurance. (This is just an estimate, prices will vary)You only pay the premium once - there are no recurring premiums.  The policy is effective for as long as you, or your heirs, have any interest in the property. Plus, you are covered even after the property is sold.

 When do I need to get owner's title insurance?

At Closing, Owner's title insurance should be offered at the closing by the attorney.  If it is not mentioned, you should specifically request the option to purchase owner's title insurance.

 

WAYS YOU COULD LOSE YOUR HOUSE AND WHY YOU NEED TITLE INSURANCE

Claims of missing heirs

Falsely personating ownership of the property

Forgery

Clerical errors

Confusion due to similar names

Unsatisfied claims on property, not shown on title search

Fraud in connection with the execution of documents

Deeds executed under expired or false powers of attorney

Incorrect disclosure of marital status of former owners

Improperly probated wills and trusts

Mental incompetence

 

I would highly recommend Title insurance for all properties purchased

It will also save you money when you sell your home... be sure to keep your policy and let the closing company know you have a owner's title policybefore they start their title search and they will discount some of their fees.  

Call Brenda Tressler

for all your financing needs

(931) 206-1907 cell

(931) 905-6900 office

brenda@imsiloans.com

clarksvilletnrealty.com

Thank you and I look forward to assisting you with your new home!

 Equal Housing Lender

Call Brenda for All your home loan needs!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comments (10)

Dale Baker
Baker Energy Audits and Commercial Properties Inspections - Claremont, NH
New Hampshire Relocation Real Estate Information

Howdy Brenda

 You are 100% right folk's really should have owner's title insurance. Seen that a home is an investment in their future, and the future of their family. It's most likely going to be their most valued, and expensive investment. They deserves protection from the unexpected.

Very fine post you have written, my friend.

God Bless America

Nov 01, 2008 07:13 PM
Roland Woodworth
eXp Realty - Clarksville, TN
eXp Realty

Brenda... It is ever so important for home owners to purchase a owners policy.

Nov 01, 2008 07:57 PM
Ann Allen Hoover
RE/MAX Advantage South - Hoover, AL
CDPE SRES ASP e-PRO Realtor - Homes for Sale - AL

Hi Brenda!  It's good to have you posting again.  This is a great one, full of important information.

Nov 02, 2008 11:38 AM
Brenda Tressler
Crye-Leike Realtors - Clarksville, TN

Hello!Dale: I sure thank you for stopping by and leaving me such a kind comment! Most of my customers do purchase Owner's insurance but is is not a common practice in Clarksville. Thanks again Brenda :)

Roland: I am honored that you stopped by... Thanks I will visit you too; as long as AR keeps working. Brenda :)

Ann: I sure have missed commenting & posting... it is good to see that you stopped by... I will try to visit you too! Thanks and have a  great evening! Brenda :)

Nov 02, 2008 02:02 PM
Robin Scott
Robin Scott, REALTOR® - Austin, TX
Broker, REALTOR® - Austin Texas

Brenda, Just dropping in to say HI. It's great to have you back and great post.

Nov 03, 2008 01:30 PM
Brenda Tressler
Crye-Leike Realtors - Clarksville, TN

Thanks for Voting!Robin: Thank you for your visit... I have really missed everyone! I am glad you loked the post... I still struggle on what to write. Thanks again! Brenda :)

Nov 03, 2008 01:35 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Great post and good reasons why a buyer should have title insurance.

Nov 05, 2008 10:35 PM
Brenda Tressler
Crye-Leike Realtors - Clarksville, TN

Hello!Gita: Thanks for stopping by and for the comment... I hope every buyer gets an Owner's policy... Thanks again Brenda :)

Nov 06, 2008 02:56 AM
Dale Baker
Baker Energy Audits and Commercial Properties Inspections - Claremont, NH
New Hampshire Relocation Real Estate Information

Howdy Brenda

Just wanted to stop by, let you know there will be a Blog along. Tomorrw night, my friend. Don't know the time for it yet.

Also want to say thank you for stopen by to visit tonight.

God Bless America

Nov 06, 2008 02:42 PM
Brenda Tressler
Crye-Leike Realtors - Clarksville, TN

Hello!Dale: I always enjoy seeing you around my post... Thanks I will look for the time. I will have the grand kids tonight but will visit after they get to bed. Have a great week-end... Your Tennessee Friend Brenda :)

Nov 07, 2008 02:03 AM