Title insurance is really different from homeowner’s insurance that covers property damage. Title insurance protects your home from loss caused by a lien, encumbrance or even title defects. A title service or title insurance is a highly important part of any home buying process. Once a transaction is accepted, then a title service will investigate public records to check if any issues persist with the homes title.
Commonly a preliminary title search is conducted at the beginning when a property is either listed or even when it is positioned under contract. Many title issues are unspecified to homeowners and will noticed throughout the preliminary title report. Problems like unsettled taxes or even a leftover contractor’s lien might be noticed. All title searches will result with a problem being revealed on the preliminary chain of title. Your title service will start to clear up any problems by taking corrective steps to resolve any flaws with the title to the investment property or associated issues. When a prelim is done, it still will not finish everything as documents might have been filed under the incorrect previous family name or property. An owner’s insurance policy is also needed by the lender which can protect the buyer from any upcoming title issues.
Nearly all lenders need title insurance and by using title insurance, a property owner has covered legal ownership to the property. Title service from a reliable company protects both the lender and the home buyer. Although you will find various title insurance policies offered, the two common policies are the home buyer’s/borrower’s policy and lender’s policy.
Home ownership inevitably come with various risks and home insurance and title insurance are must-have insurance policies which will help you keep your property investment protected . A simple way to keep in mind the major difference between the two kinds of insurance is that title insurance protects things that currently exist on the title of the investment property while home insurance is needed for future events.