|
Title insurance is not searched for on a regular basis as life, health and auto insurance. It refers to the history of
ownership and liens on a property. This coverage is for a prospective property owner to insure he is buying a property that
is free of liens or any that are unknown.
Liens can be exercised if a loan secured by the property is not paid
in full. This obgligation is sometimes unwittingly signed for when a loan is used for upgrades or improvements to a home.
And with second mortgages being the popular debt consolidation vehicle nowadays, a thorough search is very important.
To my knowledge, a title insurance policy does not cover fraudulent claims against the policy as in a mortgage gained
by identity theft. Once the determination of identity theft is made, it becomes a criminal matter. The legal fees involved
may be a charge back to the homeowner from the title company in fraud cases.
Although a property may be insured
by a title company, there is no guarantee made to sell a home if a claim arises. Once a claim is made, it has to be settled
before a property is sold. The title company cannot future obligate itself in that manner.
Other causes of claims
on a property is unpaid taxes, old land transferrs and easements created by a neighbor building on your property and over
time being able to attach that part of the land the house sits on.
I have purchased three houses and was not offered
the option to choose the title company. Even though the purchaser pays for the coverage, it is more of a benefit to the mortage
company for the title company to be competent. The purchaser does have this option but seldom exercises it.
The
cost varies from state to state due to the guidelines that governing authority requires to be followed which are wide rangeing.
But to shop for the best price may only save little while interest rates can only be locked in for a limited time. It is best
to expedite closing by using the title company suggested by the mortgage company.
|
