How Does A Title Insurance Company is of Utmost Value for Buyer and Seller of a Property?by Carteret Title Nationwide Title Company
Buying or selling a property is a tedious task as it requires so many complex formalities which need to be fulfilled. When it comes to either buying or selling the property, we do not wish to face any problems, especially regarding any legal issue. So, for this, title insurance is formed to ensure protection against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans.
Title insurance safeguards against a lawsuit attacking the title, or reimburse the insured for the actual monetary loss incurred up to the amount of insurance provided by the policy. To be more precise, a title insurance is important for the home buyer because it protects the buyer-seller from the possibility that the seller or previous seller, they both do not have liberal and clear ownership of the house and property, therefore providing rightful ownership of the property to the present buyer through a legal procedure.
In such a scenario, the role of the title company becomes highly valuable. Now, we will learn what does a title insurance company performs?
The insurance process is initiated by an escrow or closing associates after a property purchase agreement is signed. Basically, the title insurance is classified into two categories: lenders’ insurance and owners’ insurance. Majority of the lenders require the borrower purchase a lenders’ title insurance policy to safeguard the lender when the seller was unable to transfer the title of ownership rights. A lenders’ policy only defences the lender against loss, but an issued policy means a title search already took place, which can give some assurance to the buyer. It is not necessary that the title searches are not entirely flawless which comes up with the requirement of insurance. Therefore, owners’ title insurance is optional and is generally opted by the seller when the buyers make a request to protect them against the same issue of ownership rights. Sometimes, both the policies are purchased together which ensures both of them will gain the equal protection from disputes.
Title insurance provides financial protection against title issues that might not be available in the public records and is unintentionally missed in the process of a title search. Now, the mandatory duties of a title insurance company for both parties that is lender and buyer must be evident.
In this context, the role of a real estate settlement company cannot be denied by anyone. These companies incorporate with the lenders and the real estate agents of both the buyer and seller so that terms of a real estate contract can be facilitated. A customer can anytime contact a bank or lender for a mortgage. For handling the closing process, the real estate settlement firm provides complete assistance with a thorough legal procedure in place.
In this article, the author has written about the roles of real estate settlement company along with title insurance company.
Created on Jan 8th 2018 04:01. Viewed 459 times.