7 things to know about title insurance
Title insurance is an important component of the real estate transaction process, providing protection for both buyers and lenders. Traditional Abstract is known for title insurance in Bethlehem, PA, Lehigh Valley, Easton, PA, Allentown, Nazareth, PA and surrounding areas.
Here are seven key things to know about title insurance:
- Title Insurance Protects Your Property Rights: Title insurance is a policy that protects the property owner and the lender against financial losses related to disputes or defects in the property’s title. It ensures that you have a clear and marketable title to the property.
- Two Types of Title Insurance: There are two main types of title insurance policies: owner’s title insurance and lender’s title insurance. Lender’s title insurance is typically required by the mortgage lender to protect their interest in the property, while owner’s title insurance is optional but highly recommended for homebuyers to protect their investment.
- Title Searches and Examinations: Before issuing a title insurance policy, a thorough title search and examination are conducted. This process aims to uncover any potential issues with the property’s title, such as liens, encumbrances, unpaid taxes, and other title defects.
- Protection Against Hidden Defects: Title insurance provides protection against hidden defects in the property’s title, even if the issue wasn’t discovered during the title search. Common title defects include undisclosed heirs, forged documents, and undisclosed easements.
- One-Time Premium: The cost of title insurance is typically a one-time premium paid at the time of closing. The premium is based on the property’s purchase price and can vary depending on the location and insurance provider. The policy remains in effect for as long as the property owner or their heirs have an interest in the property.
- Transfer of Ownership: Title insurance can also cover situations where the ownership of the property changes due to events like divorce or inheritance. This provides ongoing protection to the property owner and their heirs.
- Peace of Mind: Title insurance offers peace of mind to property owners by ensuring that they are protected from financial losses resulting from title defects or disputes. Without title insurance, resolving these issues can be costly and time-consuming.
In summary, title insurance is a crucial aspect of the real estate transaction process, offering protection against unforeseen title defects or disputes that can threaten your property rights. It’s essential to work with a reputable title insurance company and consider obtaining owner’s title insurance for your own protection. Please call us without any kind of hesitation.
