When you are going through the home buying process there are a myriad of details, and you do not want to leave anything important out. One such item is title insurance. You might find yourself asking, “What is it and why is it important?” The following should help clarify.
What is Title Insurance?
Title insurance is a policy that protects lenders and homeowners against losing money if a problem develops within their rights to own the property in question. When the closing takes place, a lawyer will check the title of the property before the closing is complete. Sometimes there are hidden things within the title that the search will not reveal. The insurance will protect the people involved from losing money and it will cover the costs of defense if there are any claims involved. There are lender and owner title insurance policies. Lender policies are required, but they do not protect anyone homeowners. The buyers have to buy their own policies if they want coverage.
What Will a Policy Cover?
If you are thinking about getting a policy, you will want to know what all it will cover. There are a lot of common things that a policy will help cover if you run into the specific issue. You can expect it to cover your interests if there are any forged deeds, incorrect legal descriptions, or improper recordings of any deeds. It will also help protect you if any heirs appear and claim to have interest in the property for themselves. The newer policies also cover building permit violations, incorrect surveys, and zoning law violations among other things.
Why Does Title Insurance Matter?
Let's face it--you are not an expert when it comes to titles, home buying, or selling. Your Realtor is, but even that person cannot protect you from some of the aforementioned issues. Any one item can become a costly issue. If you want your home buying and selling process to go smoothly, title insurance is important. It gives you protection as well as peace of mind.
The cost of your title insurance will depend on the value of your home. It is a one-time premium payment and can be usually be estimated to be $3.50 per $1,000. You can get quotes from a number of companies and choose the best rates.
For more information on title insurance and whether it is something you should consider, talk to your real estate agent. If you are thinking of buying a home, talk to The Michele Safford Group about what they can do for you or start your search for homes in Northville, Michigan.