Everything you need to know before buying title insurance
When it comes to buying a home, it's the unexpected things that create problems. That’s why title insurance is so important. It isn't very well-known among most homebuyers, but it’s key to ensuring a quick and easy process.
What's title insurance?
In the mortgage process, the seller must transfer the legal rights to own, use and dispose of the property in the form of a "title" to the buyer.
Before issuing a transfer, title companies must do a Title Search, checking public records, to verify the seller's right to transfer. The homebuyer's legal right to the property could be challenged if the search finds any of the following defects:
- Ownership by another party
- Errors in the record
- Bad record keeping
- Outstanding lawsuits or liens
- Omitted heirs
- Fraud and forgery
Title insurance is designed to protect homebuyers and lenders from any financial loss, caused by problems like these.
Title insurance comes in two forms: a lender's policy and owner's policy.
Lender's policy – Protects the mortgage lender's security interest for the amount of the mortgage loan. This policy lasts as long as the mortgage lasts.
Owner's policy – Protects the homebuyer's investment in the property for the full value of the property. This policy lasts as long as the homeowner claims the property.
Did you know that borrowers can choose the title company on purchase transactions?
Most borrowers have the ability to shop for title insurance to ensure they are getting the proper coverage at the best price. And that's where Advocus Title comes in.
Advocus Title, an affiliated business of Rate, is licensed in 17 states and DC for purchases. So, if you're looking for the right title insurance, we're always ready to help.
Visit www.advocustitle.com or contact us at Title@advocustitle.com for a quote or to learn more about our services.
Rate, Inc. may choose to recommend Rate Insurance, LLC and/or Advocus Title Agency, LLC to provide insurance and/or title/escrow services. Rate, Inc. has 100% ownership and a direct or indirect financial interest in Rate Insurance, LLC (d/b/a Larchmont Insurance Agency, LLC in California (License 0k09890)) and Advocus Title Agency, LLC. You are not required to use Rate Insurance, LLC and/or Advocus Title Agency, LLC as a condition for, settlement of your loan on, or purchase, sale, or refinance of, the subject property. There are frequently other settlement service providers available with similar services. You are free to shop around to determine that you are receiving the best services and the best rate for these services.
Advocus Title:
Licensed in: AZ, CA, CO, CT, FL, GA, IA, ID, IL, IN, KS, KY, MA, MD, ME, MI, MN, MO, MT, NC, ND, NH, NJ, NV, NY, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WA, WI
