What is title insurance?
So, you’re buying a house. It’s an exciting time. It can also be a bit confusing. Things feel like they’re happening fast and often, some important things can go unexplained – like title insurance. So, we’ve put together some basic information for you on title insurance in this flyer. What is title? Simply stated, the title to a piece of property is the evidence that the owner is in lawful Title insurance can protect real estate owners and lenders against any property loss or damage they might experience because of liens, encumbrances or defects in the title to the property. Each title insurance policy is subject to specific terms, conditions and exclusions. How does title insurance differ from other insurance? Insurance such as car, life, health, etc., protects against potential future events and is paid for with monthly or annual premiums. A title policy insures against events that occurred in the past and affect, for a one-time premium paid at the possession of that property. What is title insurance? Title insurance protects against claims from title defects. Title defects are things such as another person claiming an ownership interest, improperly recorded documents, fraud, forgery, liens, encroachments, easements and other items that are specified in the actual policy. close of the escrow. What does it cover?
Who needs it? Purchasers and lenders need title insurance in order to be insured against various possible title defects. The buyer, seller and lender all benefit from the issuance of title insurance. How is a title policy created? After the escrow officer or lender opens the title order, Aegis Land Title Group begins a title search. A preliminary title commitment is issued to the customer for review and approval. All closing documents are recorded upon escrow’s and the parties’ instruction. When recording has been confirmed, demands are paid, funds are disbursed, the actual title policy is created. What is escrow? Escrow refers to the process in which the documents and funds of a transaction (such as the sale of a house) are held by a neutral third party, often the title company or an attorney in the case of real estate, pending the fulfillment of the terms and conditions of the transaction. What are the policy types? An owner’s policy insures the new owner/homebuyer, and a lender’s policy insures the priority of the lender’s security interest. Contact us for information about title insurance and to learn more about our company.
www.agltg.com
Aegis Land Title Group
Powered by FlippingBook