Function And Scope Of Title Insurance

By Author: William King
Total Articles: 365
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In real estate terminology "title claim" is essentially the property rights, and in United States "Title Insurance" is a quite common form of insurance. It is more or less a requisite when you are going for a mortgage. It differs from other forms of insurance as it normally requires a one off payment at the time when you are purchasing a policy and no future installments (though there are some service charges attached). Another difference stems from the fact that Title insurance provides protection for the "damages or loss" that has already occurred, that is in contrast to the normal insurance policies that secures you against future losses. A Title Insurance Policy protects the owner of the policy from all types of vulnerabilities linked to the Title of property or land that may arise at a later stage. Title insurance policy is accompanied by a "Title report" issued after a careful "Title research". Title Insurance can protect you in tricky situations like undisclosed liens, forged or fraudulent acts in previous transactions concerning the property you've purchased, errors in public record or title verification process, ...
... etc.
Lender's Policy vs. Owner's Policy:
Lender's policy has limited scope and it generally protects the lender whereas owner's policy covers a wider set of damages. That is why being a buyer; you should better opt for an Owner's policy when acquiring a Title Insurance. The buyer can expect or even ask the property seller to pay for owner's policy. If that is not the case and you are making a purchase in US real estate market, you should take into account the cost of Title insurance with all other expenditures while negotiating the price for some property.
Is the "Title Insurance Policy" worth paying for?
Even if it wasn't, you don't really have a choice if you are willing to acquire a mortgage. However, you have many choices to save or reduce the cost when you are looking to get your hands on "Title Insurance". For example, you can compare the prices (both premium charges and service charges) of all the Title insurance providers, also you can check if the property in question has already got a Title Insurance policy. Not that you can use the previous policy in your future dealings, however if you can hire the same company, you will get considerable discount (mainly because they don't have to do the research work from scratch).

William King is the director of UAE Dubai Property & Dubai Real Estate Properties Portal: http://www.bayut.com, Pakistan Real Estate & Pakistan Property Portal: http://www.zameen.com and Property & Real Estate Directory: http://www.propertydir.com. He has 18 years of experience in the marketing and trading industries and has been helping retailers, entrepreneurs and startups with their product sourcing, promotion, marketing and supply chain requirements.

Title, insurance, property, real estate, mortgage