Title Insurance
Title Insurance is a form of indemnity insurance that protects lenders and homebuyers from financial loss sustained from defects in a title to a property. This insurance protects the insured from financial loss when there are claims filed against a title, such as outstanding liens, back taxes, and conflicting wills. It is predominantly found in the United States and Canada. The most common type of title insurance is lender’s title insurance, which the borrower purchases to protect the lender. The other type is owner’s title insurance, which is often paid for by the seller to protect the buyer’s equity in the property. A clear title is necessary for any real estate transaction.
Unlike Traditional Insurance, which protects against future events, title insurance protects against claims for past occurrences. A basic owner’s title insurance policy typically covers the following hazards: Ownership by another party, incorrect signatures on documents, in addition to forgery and fraud, flawed records, restrictive covenants (terms that reduce value), such as unrecorded easements, encumbrances or judgments against property, such as outstanding lawsuits and liens.
A Title Search is an Examination, of public records to determine and confirm a property’s legal ownership and determine whether there are any claims on the property. Erroneous surveys and unresolved building code violations are two examples of blemishes they can make the title “dirty.” Title insurance protects both lenders and homebuyers against loss or damage occurring from liens, encumbrances, or defects in a property’s title or actual ownership. Common claims filed against a title are back taxes, liens (from mortgage loans, home equity lines of credit (HELOCs), easements) and conflicting wills.onflicting wills.
U.S Homes Value as of 2022
Property Fraud Increase 2021-2022
Total Equity as of 2022
