Look at Our Featured Homes
Find Bradenton Homes for Sale
Bradenton Buyer Guide
Bradenton Seller Guide
Real Estate Investing Tips
Bradenton Real Estate News
Meet the Team and learn about our Highest Rated Service
Information about the Bradenton Area
Bradenton Real Estate Home
Contact us


Name:
E-Mail:

Phone:

Comments and Questions:

  Title Insurance: Who Needs It? - Back
by Courtney Ronan

During the real estate transaction (especially if you're a first-time buyer), you're hit with so many foreign terms, fees and requirements your head spins. One of those strange and unfamiliar costs is title insurance. In most cases, borrowers have no option -- either you get title insurance (among other requirements) or you don't get a loan.

The lender says you need it, you want the loan to go though, so you buy title insurance. Great. So what is title insurance?

When you buy a home you want to make sure that the people selling it actually have full and legal title. The party who conducts closing will check this out by going down to the local property records office to research the history of ownership.

But -- and here's the tricky part -- those records down at the property office may be official, but they may also be wrong. It's also possible that the person who does the title search can make a mistake and also that important information may simply not be recorded.

For instance, maybe a bill against the property was not recorded or some taxes were not been paid. Or, suppose that 40 years ago the property you want to purchase was owned by Smith. Let's also imagine that Smith was a bigamist with an extra spouse. Will this matter show up on the local property records? Not likely. Does the additional Smith spouse have an ownership claim against the property? That may only be clear after a lot of legal wrangling -- and if you lose, you could lose the house.

There may be other odd and bizarre claims as well. Was an owner an alcoholic? Insane? A drug user? Is there a contractor with a claim against the property? Such issues can "cloud" titles and neither lenders nor owners want clouds.

One form of title insurance, "lenders" coverage, is designed to protect (who else?) your lender in case of title problems. "Lenders" coverage is required and generally provides protection up to the original mortgage amount -- if you buy a home for $300,000 and get a $250,000 mortgage, then $250,000 is as much coverage as you can get with a lender's policy. If there's a claim, the title insurer will fight on your behalf and if there's a claim the policy will pay off the loan if necessary. This is good news for you because you won't owe the lender a dime if you lose in court.

But there are also some options.

For instance, you can also get "owners" coverage. This will protect your equity -- that $50,000 in the example above not covered by the lender's policy. And you can often get an "inflation rider" with an owner's policy -- as the value of your home goes up, so does the value of your title coverage.

Click Here to Return to Article Index.
Home View Homes Search Homes Buy A Home Sell A Home
For Millionaires Newsletter About Us Contact Us Area Info

Privacy Policy:
All information you share with us is kept strictly confidential and is never shared with anyone else. This includes your contact information including name, address, phone, and email address. We will only contact you regarding information you have requested from us. You may ask to have your contact information deleted at any time by using the "contact us" button on our website. Thank you.

Copyright © 2002-2016 Avery Realty Team

 

 

 

 

Avery Realty Team provides the highest rated full service in real estate services for Florida, Bradenton, Bradenton Florida, Bradenton Florida Real Estate, Bradenton FL real estate, Bradenton Real Estate, Bradenton Beach, Bradenton real estate for sale, Realtor Bradenton, Bradenton Realtor, Sarasota, Sarasota Florida, Sarasota Real Estate, Sarasota Florida Real Estate, Sarasota FL real estate, Sarasota, Lakewood Ranch, Palmetto, Palmetto Florida, Ellenton, Ellenton Florida, Manatee County, Manatee County Florida, Manatee County Florida real estate, Sarasota County, Sarasota County Florida, Sarasota County Florida real estate, real estate investing, MLS Bradenton Florida, Bradenton Homes, Sarasota Homes, Sarasota Properties, Sarasota Realtor, Sarasota MLS, MLS Sarasota, Sarasota Realtor, Lakewood Ranch Country Club, The Concession, real estate investing, real estate investment, real estate investing in Bradenton Florida, real estate investing in Sarasota Florida, new homes in Bradenton Florida, new homes in Sarasota, Florida.