At McGill Law, we understand that purchasing a house is more than just buying a building.
A new house can be a home, a future and an investment. One way to protect your new home is by purchasing title insurance.
WHAT IS TITLE INSURANCE?
Title to your property is a term which describes your right to own, enjoy and sell the land you have purchased. It consists of all the transactions that have occurred in relation to the land you are buying before your ownership of the property begins. If there is a problem in this history of transactions, it is known as a title defect. Such title defects are oftentimes resolved prior to closing as they are discovered through a title search, a thorough examination of all the public records in your town/county that affect your property.
Securing Your Future
Sometimes, however, title defects are undiscoverable prior to closing and a title defect arises weeks or years after you move into your new home. Title insurance is insurance that protects against undiscovered problems in title. It works to protect a lender or homeowner against financial loss due to some common title defects.
1. How much does title insurance cost?
Title insurance is paid for in a one-time premium collected at closing. The amount of this premium is based upon the purchase price of the property. There are no additional fees due at closing.
2. How long does the title insurance policy last?
An owner’s title insurance policy lasts for as long as you own the house, and even protects you after you sell it.
3. Who does a title insurance policy protect? There are 2 kinds of title insurance policies:
1. A lender’s policy is paid for at closing, required by your mortgage lender and protects your mortgage holder (the bank).
2. An owner’s policy is also purchased at closing, is optional but recommended, and protects you, the homeowner.
4. Why should I purchase owner’s title insurance? What does the policy cover?
Owner’s title insurance protects what is for most of us our most significant asset and investment, our home. It protects from losses against many of the most common title problems that can be discovered after your closing, such as:
Unidentified easements Fraud
Forgery Recording errors Unpaid taxes
Title insurance does not protect against every conceivable title problem, but it does protect you from many of the most common title defects for as long as you own your home and even after you sell.
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