Why Title Insurance?
In the wake of the sub prime mortgage crisis, even our Napa Valley real estate market has seen an increasing number of foreclosures.
Why title insurance find out here
In comparison with a traditional sale between a seller and a buyer, in a foreclosure sale it is the lender that is the seller.
With the lender being an institutional seller, it is more important than ever to obtain property reports and verify accurate ownership and lien information - in other words, get title insurance.
The actual answer to the question of whether or not you need title insurance is no. You can buy a property without purchasing insurance and there is no legal requirement that you must do so.
However, after looking at the risks you are exposing yourself to, as well as the potential legal consequences you may encounter, you will likely decide that the insurance coverage and peace of mind is well worth the expense.
If you have a loan placed on the property you are buying, the lender will require that there be title insurance coverage securing their interest in the property. Here are some of the general areas where you are provided recourse and protection by obtaining a policy:
• Title companies work in advance of issuing the policy to identify and eliminate title defects that may have been created in the past, thus eliminating potential risks.
• The title insurance offers protection against claims resulting from various defects that
may exist at the date of issue. This may include claimed interest by those other than the owner of record. The title can be impacted by divorce, death or other forms of divided or changed interest.
The insurance policy can protect you by affirming that the person acting as the seller is in fact the owner of the property - or has the legal right to sell the property.
• The policy will give a legal description identifying the land. It will also provide a tax statement indicating the existence of any assessment districts or other taxing authorities that you may not be aware of from the seller’s representations.
• Lien and tax obligations will be stated in the title report.
• If the seller is a partner, corporation, or acting for a deceased person or under a trust, it is the responsibility of the title company to insure that the seller has the proper authority to execute a deed and that the deed showing you as the new owner is properly prepared and recorded.
• Physical aspects to the property may be covered by your policy depending on the type and extent of coverage that you obtain. There can be improvements encroaching on your land from a neighbor property, water rights, mineral rights, access roads and utility easements or other specific inclusions or exclusions in your title policy. These items can be covered by your policy at the time of purchase
We have at least five excellent companies here in Napa, each providing excellent service. Ask your friends and real estate professionals for a recommendation. You can obtain title insurance and have the peace of mind and future security of knowing that your home is protected from past title defects and that it has been properly conveyed to you.
By Charles Bogue
Struggling with payments on your mortgage, don’t foreclose…Short Sale Homes
Homes For Sale in Boca Raton Florida Whether searching for new homes, short sales, listing your property or buying foreclosures Homes for sale in Boca Raton Florida can provide you with with expert an solutions
Provides the best credit card reduction services Credit Card Debt Relief Get a Free Debt Analysis. Or Consolidate with Refinance Florida
