In recent years, title insurance for real estate transactions has become an increasingly popular tool and used often in real estate transactions in purchasing residential homes, condominium units and commercial properties. Title insurance policy moves the risk associated with title from the buyer, the lending institution, or the lawyer to the title insurer. It is designed to cover the unpredictable or undetectable issues that can affect the right of ownership to the property and often allows the purchaser to spend less on legal fees since certain redundant searches prior to closing may be waived by the title insurance company. The insured is protected in the event that loss arises from one or more covered title risks, for example defects in the title to a property, tax arrears, zoning matters, another party claiming an interest in the property and title fraud. In these cases and in many other cases, the title insurer may rectify the problem or compensate the title insurance policyholder provided the type of problem that surfaces is covered by the title insurance policy. It is important to note that title fraud is a serious issue these days and unfortunately on the rise. Fraud can occur when someone commits a criminal act by selling a property without the true owner knowledge, re-mortgage a property and obtain funds by providing fake identification and forging faulse signature. It is therefore vital that every homeowner should get title insurance as the damage can be quite substantial. Prior to closing the real estate transaction, the lawyer acting on behalf of the purchasers should advise the purchasers that they have the option to title insure their newly purchased property. There are a number of title insurance companies offering title insurance today. When purchasing a property, be sure to speak to me for clarification on your title insurance policy and what kind of coverage you will get. Title insurance is also available for existing home owners with certain qualifications.
Wednesday, October 10, 2007
Title Insurance
In recent years, title insurance for real estate transactions has become an increasingly popular tool and used often in real estate transactions in purchasing residential homes, condominium units and commercial properties. Title insurance policy moves the risk associated with title from the buyer, the lending institution, or the lawyer to the title insurer. It is designed to cover the unpredictable or undetectable issues that can affect the right of ownership to the property and often allows the purchaser to spend less on legal fees since certain redundant searches prior to closing may be waived by the title insurance company. The insured is protected in the event that loss arises from one or more covered title risks, for example defects in the title to a property, tax arrears, zoning matters, another party claiming an interest in the property and title fraud. In these cases and in many other cases, the title insurer may rectify the problem or compensate the title insurance policyholder provided the type of problem that surfaces is covered by the title insurance policy. It is important to note that title fraud is a serious issue these days and unfortunately on the rise. Fraud can occur when someone commits a criminal act by selling a property without the true owner knowledge, re-mortgage a property and obtain funds by providing fake identification and forging faulse signature. It is therefore vital that every homeowner should get title insurance as the damage can be quite substantial. Prior to closing the real estate transaction, the lawyer acting on behalf of the purchasers should advise the purchasers that they have the option to title insure their newly purchased property. There are a number of title insurance companies offering title insurance today. When purchasing a property, be sure to speak to me for clarification on your title insurance policy and what kind of coverage you will get. Title insurance is also available for existing home owners with certain qualifications.
