What is Title Insurance?
Beaufort and Morehead City, North Carolina
WHAT IS TITLE INSURANCE?
Title insurance is a contract to protect an owner and/or lender against losses arising through defects in the title. Title insurance guarantees that the ownership of the property that you are purchasing is as stated in the public records. Lenders are also protected as to the priority of their loan. The primary purpose of title insurance is to eliminate risk and prevent losses caused by defects in title arising out of past events. Defects could be present at the time of purchase, which could cause future problems. Examples of such defects are: improper legal description due to clerical errors, undisclosed heirs, signing by anyone without authority, and forgery.
WHY DO YOU NEED TITLE INSURANCE?
You need title insurance because any home, no mater how new or apparently secure, is built on land as old as the earth itself. Undoubtedly, this land has had many previous owners. Claims against any one of these persons can be filed against you as the present owner. Such hazards as fraud, missing heirs, old liens, can arise.
Title Insurance protects you against claims and title faults. It makes your home safely yours. Your title insurance policy is your shield of protection and will defend your ownership against loss. You pay one premium only-your protection and peace of mind last as long as you and your heirs remain in ownership.
HOW LONG DOES TITLE INSURANCE REMAIN IN EFFECT?
Title Insurance lasts as long as the insured has an interest n the property. Title insurance remains in effect as of its date until the next sale of that particular parcel of real property. For the lenders, the Title Insurance policy is in effect until the loan is paid in full.
WHO PAYS FOR TITLE INSURANCE?
Customarily the seller pays for the title insurance premium that protects the buyer's title to the property. However, the buyer and the seller may negotiate who will be responsible for cost.
If the buyer is obtaining a loan to purchase the property, the lending institution will usually require a title insurance policy to protect their collateral interest in the property. The buyer is responsible to pay for the lender's title policy as one of the costs of borrowing the money unless the seller agrees to pay that portion of the buyer's closing costs.
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What Is Title Insurance?
Please Contact Copeland Real Estate to act as a Buyer's Agent for homes, land, commercial property or other real estate in Beaufort or Morehead City, North Carolina.
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