This infographic titled ‘Benefits of Title Insurance’ lists the benefits of buying title insurance for both the property purchaser and the mortgage lender. A property title is proof of the land’s ownership. Title insurance is meant to protect the property owner against any loss due to a claim on the property.
Benefits for the purchaser
Personal protection: Title insurance provides protection against loss to the property owner in case of property title fraud. Any threat to the property title will jeopardize the investment in the property.
Group protection: If the land was bought for a commercial purpose any threats to the property title will affect the purchasing company. Commercial properties are typically quite expensive and the financial ramifications to investors could be considerable.
Protection for heirs: Title insurance also protects future generations for as long as they hold the property and even after it’s sold by a warranty deed.
Benefits for mortgage lenders
Protection against financial loss: A mortgage lender’s return depends on the property owner’s ability to pay back the loan. A financial loss to the purchaser will directly affect the owner’s ability to pay back the mortgage, resulting in loss of investment.
Protection for investors: Any threats to the title ownership also threaten the interests of the mortgage lender’s investors.
Protection for the life of the loan: Title insurance protects the lender as long as the mortgage remains unsatisfied.
For more information, please refer to the infographic below.
If you are buying a property, you may have heard about title insurance. Title insurance protects the buyer from any threats to his/her ownership in the future. This may include debts, liens against the property or unknown heirs. Buyers are typically advised to buy Boca Raton title insurance. But there are some things you should know about this insurance before you buy:
It is not necessary to buy title insurance. The law does not make it mandatory. You can buy a house without the assurance of title insurance. However, any losses in such cases will be completely borne by you.
While title insurance is not mandatory, you may have to buy title insurance if you are looking for a mortgage lender to finance your investment. Most lenders will demand title insurance to protect their own investment. After all, any threat to your ownership will jeopardize their returns.
Choose your title insurance firm carefully. You can compare the different terms offered by different companies. This will give you an idea about the costs and usual protective terms offered under the insurance.
Boca Raton title insurance is a one-time cost. Unlike other insurances, you will not be required to pay premiums every year.
Find out if the insurance company offers multi-tiered pricing on their policies. Many insurance companies offer standard and enhanced policies. Some of these firms will only quote the enhanced price and not disclose the standard pricing. This is because the standard pricing is lower.
Even if you did not buy title insurance at the time of buying a property, you will probably ask to buy one if you plan to refinance.
Boca Raton title insurance companies fight aggressively to get customers. As a buyer, you must educate yourself on the different options in the market and look for the most favorable terms. You can also ask for discounts or negotiate with the insurance company.
Title insurance protects you against any financial loss related to the ownership of a property. This can occur in the form of an overdue loan, mortgage, unpaid taxes, another claimant or liens against the property. Boca Raton title insurance protects you against any financial loss that you may suffer due to these ownership-related issues.
There are two types of title insurance: lender’s policy and owner’s policy. The lender’s policy is required by the lender, since any issues with ownership will affect the lender’s security. The owner’s policy protects your interests and covers the value of the property at the time of purchase.
Unlike other forms of insurance, title insurance protects against events in the past. It will not protect you if there are any issues regarding the ownership after you buy the insurance. For example, it does not protect your interests if you forget to pay your mortgage later.
A title company will typically do a title search before selling Boca Raton title insurance. The search is conducted to ensure that there are no contesting claims to the ownership of the property, which in turn minimizes the risk associated with the title.