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.