The Wall Street Journal recently wrote an article, titled “Title Insurance: A Friend in Deed,” written by journalist Anya Martin.The article not only described how title insurance protects borrowers and mortgage lenders in disputes over the ownership of a property.
Playfully, the post begins with the statement, “There are titleholders in beauty pageants, spelling bees, and boxing matches. But only one title matters when buying a home.” This is certainly true. A title often refers to a formal document, such as a deed, which demonstrates evidence of ownership, and it’s imperative that the title is clear, meaning that it has no undisclosed heirs, unpaid liens, delinquent taxes, or other disputes that would prove to be troublesome for future owners. Implementing a title search and purchasing title insurance are surefire ways to protect both borrowers and lenders, absolving any fears.
There’s devastation potentially in store for anyone who’s purchasing a home while unprotected. Title insurance is a blanket of protection, and a title search scours public records, going back numerous years. Nearly 35 percent of all title searches reveal a problem, according to the American Land Title Association (ALTA). Title companies are able to correct issues, such as an outdated survey of property lines.
In some cases, mortgage lenders ask that borrowers pay for title searches and title insurance. However, that tends to be title insurance that protects lenders, not borrowers. That specific policy, which is a one-time fee that’s paid at closing, covers the property’s loan amount, decreasing as the borrower pays off the mortgage. The loan policy that protects a borrower is different entirely, and it’s called an owner’s policy. The owner policy will protect new home buyers in the case that issues of legality come into play.
Depending on the size of the mortgage, a lender’s policy could cost anywhere between $1,800 and $3,000, depending on the choice of home title agency. However, it could cost less if bundled with a lender’s policy at closing.
The owner’s policy isn’t mandatory, but possession of one could be priceless, stomping out challenges and checking for conflicts and solvency. Also, home title insurance will provide services, such as preparing and notarizing documents.
Assured Title Agency is a Denver, Colorado-based title insurance company dedication to provided the highest quality customer service and peace of mind when conducting complex real estate transactions. Be sure to visit our websites: and . #titleinsurance #Denver #BeAssuredNow