What Does A Title Insurance Company Cover?

What Does A Title Insurance Company Cover?

by | Sep 26, 2019 | Title Guarantee, Insuarance, Utah Title

Title insurance is a type of guarantee insurance. It guards the title insurance holder against monetary loss arising from flaws in a title related to property. According to Utah’s leading title insurance company, the most popular form of title insurance is the lender’s title insurance. The person doing the borrowing purchases insurance coverage to shield the lender.

Another type of title coverage is the owner’s title insurance. It is purchased by the seller in order to protect the consumer’s equity.

How does Utah’s leading title insurance company work?

Having a clear title in a real estate contract is very important. Title companies are obligated to conduct an in-depth search on all titles to examine if any liens or claims exist against the title. This must be done before the title insurance is issued.

A title search is a close inspection of existing public records to examine and confirm a property’s lawful ownership. It is also necessary to determine if there are claims against the property. Unresolved building code defilements and flawed surveys are two ways that can tarnish a title.

Utah’s leading title insurance company provides protection for both lenders and real estate owners from damage or loss incurred from defects within the title, hindrances and liens or ownership of the property. Unlike regular insurance which acts as protection from future issues, title insurance coverage guarantees protection from past claims.

How do you purchase title insurance?

A closing agent or escrow will initiate the title insurance procedure once the property purchase agreement procedure is complete. In the United States, there are five main title insurance underwriters. This includes several regional independent companies like Utah Title.

What is the cost of title insurance?

The cost of the title insurance is around 1% of the acquisition price of the real estate. However, this also varies from state to state. For instance, the owner’s title insurance for a Californian property that costs $500,000 ranges between $1,200 to $2,000.

What risks can you expect for not having title insurance?

If you fail to purchase title insurance, it puts transacting parties at risk in case there’s a defect present in the title. For example, consider the situation of a homebuyer who has closed his purchase on a particular property. He discovers after closing that there are unpaid taxes on the property unpaid by the previous owner.

Without Utah’s leading title insurance company coverage, the new owner may be faced with the burden of paying back taxes left by the previous owner. If the new owner fails to pay these taxes, they risk losing their home. If the new owner had purchased title insurance, this coverage would protect the new buyer for the duration of ownership of the property.

Before purchasing or investing in any kind of real estate, ensure that the property doesn’t have a damaged title. For instance, a home that is in foreclosure will typically have several unresolved issues. As a potential buyer, having coverage from Utah’s leading title insurance company will protect yours from unforeseen claims in the future.

What are the types of title insurance?

There are two forms of title insurance: owner’s insurance and lender’s insurance. Lenders need to encourage borrowers to buy the lender’s title policy. This protects the lender in case the seller was not able to legally transfer the ownership rights title. The lender’s policy provides protection from loss. It is the most common type of policy.

Owner’s title insurance is obtained by the seller. It protects buyers from the problems in the title. Title search is not perfect. Therefore the owners face a risk of loss and need this owner’s title insurance as an insurance policy.

Title insurance can be purchased from any financial institution. It provides coverage for unrecorded liens, mechanics’ liens, access rights, unrecorded documents, and any other defects.

For adequate protection, both types of policies are required.

What types of coverage does Utah’s leading title insurance company provide?

There are three coverage levels: standard, extended, and comprehensive coverage.

Standard coverage provides coverage for the following:

– Lack of access rights

– Poorly recorded deed

– Deed not combined with the relevant party, i.e. spouse, business partner, etc.

– Lack of legal authority, capacity or competency by a party

– Impersonation or forgery

– Inadequate or flawed legal descriptions

Extended coverage provides protection for the following:

– Post policy forgery

– Dimensions and location of insured land

– Incorrect survey

– Deed to a land with a building encroaching on the land of the other party

– Silent liens

– Off record matters like prescriptive easement or adverse possession

During a real estate transaction, it isn’t sufficient to look into a property’s title. It is recommended that you purchase coverage from Utah’s leading title insurance company before you invest or purchase any real estate.

Is The Owner’s Title Insurance Vital?

Is The Owner’s Title Insurance Vital?

by | Sep 10, 2019 | Title Guarantee

To answer the question – Yes, the owner’s title insurance is essential. But do you know what an owner’s title insurance actually is? When you buy a home from an individual, you are given a title or ownership of the property. Owner’s title insurance protects you from any problem which may happen during the transfer of property ownership. If in case a dispute arises during the sale of any property and if you have luckily taken title insurance of the same, then the title insurance company will pay for the legal fees depending on the kind of policy you have got.

Now you must have understood the significance of Title Insurance. If you are planning to insure your property with title insurance, here is the list of questions you need to ask Utah Leading Title Insurance Company:

Are the prices of insurance regulated?

In the United States, the prices of title insurances are regulated. So the cost will not vary much from one title insurance company to the other. Even if the price difference is not much, always choose an insurance company that is willing to do a thorough research of the property before you buy it. Try to find an underwriter who will stick around for the next ten to fifteen years with you to solve your problems regarding a property dispute. Though the actual policy cost is regulated, other expenses like courier fees or wire fees can make your total cost much higher. So while asking the value of the insurance to the company, ask them about the total cost, not just the cost of the policy.

How do I decide about my coverage?

An owner’s policy usually gives protection against contingencies like forgery, fraud, spousal claims, and undisclosed heirs. But if you get additional coverage, then the total cost might increase substantially. Sometimes your lender can get an ARM (adjustable-rate mortgage) which means if your property goes into foreclosure, he will be the first to get paid. So, know about the contingencies in details with the help of a reliable Utah Leading Title Insurance Company before taking out a policy.

Who does pay for the insurance?

There are two kinds of title insurances. One is for the buyer, and the other one is for the lender. Though it varies from state to state in the US, most of the times, the buyer pays for one insurance and the lender pays for the other. Try to buy both of the guarantees from the same company that may increase your chances to get a substantial discount.

Note if the insurance company is the same as the sellers.

If the title insurance company is the same as the sellers, then avoid it at all cost because a title insurance company is meant to do a title search before you buy the property from the seller. If you get insurance from the same company, then you will get the same results your seller got from past so many years. Sometimes they copy-paste those records to save time. Choose a title insurance company on your own without the involvement of your seller.

Who should you trust?

If you are getting simultaneous advice from your seller, money lender and your real estate agent, always take your money lender’s counsel because he is the one who will suffer the most if any problem arises regarding your property. The lender is the one who is investing a large amount of money based on your title insurance. So, he has to make sure that the property is yours. Do not ignore your lender.

How much the owner’s title insurance does one need?

Always check whether the underwriter who is issuing the policy is sound or not. Check the insurance company’s financial solvency, whether it is stable or not through different ratings. Sometimes banks and insurance companies go under. So, if you find that the company from which you are getting the insurance has a good reputation from the past for many years, then you can get big insurance. But Utah’s Leading Title Insurance Company can guarantee you of the money you are going to receive through years of experience and numerous satisfied customers. Do not forget to contact your underwriter to get a copy of your policy because, in some instances, agents issues policies but the consumers didn’t get covered.

Owner’s title insurance lets you be peaceful and happy in the many years to come. You will not have to worry about the previous owners or any financial claims attached to the property you just bought. But, try to get the insurance from Utah’s Leading Title Insurance Company, then you will be sure about the money you will receive in case of any hindrance.

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