What is Title Insurance?
Getting you the mortgage you deserve
What is Title Insurance?
In simple terms, title insurance protects both the lender and the homeowner against
risks related to the property’s ownership or title. While it originally started as a replacement
for a survey certificate, title insurance has become a standard requirement for most real estate
transactions, especially when you’re buying or refinancing a home.
risks related to the property’s ownership or title. While it originally started as a replacement
for a survey certificate, title insurance has become a standard requirement for most real estate
transactions, especially when you’re buying or refinancing a home.
What does Title Insurance cover?
The primary protection title insurance offers are against fraud, something that’s unfortunately on the rise.
For example, identity theft can allow fraudsters to impersonate the true
property owner, sell the property, or take out a mortgage without the owner’s knowledge.
This kind of fraud can cause serious financial and legal headaches.
For example, identity theft can allow fraudsters to impersonate the true
property owner, sell the property, or take out a mortgage without the owner’s knowledge.
This kind of fraud can cause serious financial and legal headaches.
How much does Title Insurance cost?
For properties with a purchase price under $1,000,000, the cost of title insurance typically totals $225.
This includes $175 for the lenders policy and $50 for Owner’s policy.
For every additional $1,000 above the $1,000,000 purchase price, the cost increases by $0.90.
This includes $175 for the lenders policy and $50 for Owner’s policy.
For every additional $1,000 above the $1,000,000 purchase price, the cost increases by $0.90.
Is Title Insurance mandatory?
Title insurance is typically optional unless required by the lender, which is the case for most transactions.
Like other types of insurance, it is designed for those who want added protection against specific risks.
It can be especially beneficial for buyers purchasing properties with known issues, such as encroachments or unauthorized improvements.
Clients are encouraged to speak with their lawyer to fully understand the benefits and costs of title insurance in their specific situation.
Like other types of insurance, it is designed for those who want added protection against specific risks.
It can be especially beneficial for buyers purchasing properties with known issues, such as encroachments or unauthorized improvements.
Clients are encouraged to speak with their lawyer to fully understand the benefits and costs of title insurance in their specific situation.
To learn more about real-life situations where title insurance has protected homeowners and property buyers, click here to explore detailed case studies and examples.
