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Title
Insurance
Title insurance is important because, by providing
you with an Owners Policy, they insure that you have
clear title to the property. If there are any problems
later, you can always go back to the title insurance
company and have them clear it up. Since it is customary
for the seller to pay for the owner’s policy, they
have an interest in which company is used.
However, you are going to pay a fee to the title insurance
company, too. This is for the Lender’s Policy.
The lender’s policy insures your mortgage lender
that there are no liens or judgments against the property
and that the mortgage will be in first position. In
other words, should you sell the property or refinance
it, their mortgage gets paid first, before any other
claims against the property.
The lender’s policy is less expensive than the
owner’s policy.
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All Buying &
Selling articles courtesy of © 2000 RealEstate
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