Buyer/Seller Title Insurance
Why Insure the Title of your Home?
When you buy a house, you are buying more than the structure and the property it sits on. You are also buying its legal history, as it is identified in the title. If there is a problem with the title that was never uncovered during the closing, such as a lien on the property, that problem could be yours’; therefore obtaining title insurance is critical.
The Role of Title Insurance
Title insurance insures parties against loss resulting from matters affecting title to real property. Title insurance companies evaluate the history of the property and insure that nothing in the history of the title will result in a loss to the insured. Unlike other forms of insurance, title insurance is paid for by a single one-time premium at the time the property is acquired.
Title Insurance for your Lender vs. Title Insurance for you
Most mortgage lenders require people to purchase a title insurance policy in the lender’s name. That policy is called the Mortgagee Policy, and it is required to insure the validity of the mortgage as a lien on your property. However, the policy you buy from the lender does not protect you. Owners desiring title protection must purchase a separate policy insuring their interests. The title insurance policy you purchase through the legal services provided by Calenda & Iacoi, during the closing process is for yourself is the Owner Policy.