Do you really in need of title
insurance? Is it a necessity or an added to cost when you are buying or
selling a home? You may not think much about it, but including title insurance
has many benefits, not just to the homeowner, but to the people who are
involved in the sale and purchase of a home.
Different protection
against financial losses
The buyer of any real
estate need protection against financial losses due to the fault in the title of
the property which is being purchased. For a one time single premium, which is
a minimum amount of the property value, the home buyer can get the shield of a title insurance policy - a very good policy which is funded by the solvency and
reserves of that particular company. The title insurance policy will safeguard both
the claims which is getting out of the title problems that are found in public
records.
For the benefit of lender
The majority of the mortgage
loan are taken by the person performing by savings banks, savings and loan
associations and the commercial banks on part of their depositors, and also by the
companies on the part of their policyholders. Because these companies are
lending other people's money so these lenders must be well conscious of the welfare
of their mortgage investments.
For the benefit of the
seller
The title insurance policy
also safeguards the seller from any financial loss if the seller's title is disallowed
by the prospective purchaser.
For the benefit of the real
estate attorney
The Title insurance also allows
the real estate advocates to provide their client with more protection. The
attorney's consultation is only limited to the record and the client can
recover it from such attorney if the attorney is found to be negligent.
For the benefit of the Home
Builder
Providing varied title
insurance information and services to the home builder, title insurance industry helps the builder in evaluating and identifying
and evaluating the building and removing title problems which could arise.
Bottom Line
While selling or purchasing
a home, purchase the title insurance for the reason of security in such sale.
Thus not only the title insurance will protect that insured owner, but it also
protect the person's heirs for as long
as they hold the title of the property, and even after they sell by the warranty
deed.
