Hello World! Welcome Friends! Protection from financial loss is an insurance feature that everyone can use. Heavy legal expenses are attached to not having title insurance, so why take the risk? The buyer and seller have a choice in coverage and an equal amount of assets to lose.
1. Owners
When an owner wants to purchase title insurance, they usually employ the services of Sunnyside title company. The owner’s title insurance protects the current owner from claims against the former. Title insurance was created by having your assets caught in the crossfire between two unrelated individuals. The home is now yours, so any former disputes should be settled without putting you at risk. There is no set price for this type of insurance, so research before settling. Prioritize price and company reputation to get the best value possible for your money.
2. Lenders
Lenders are the same as owners’ title insurance, but with an emphasis on protecting the lender. An important distinction is that lenders’ title insurance only protects the lender and not the current purchaser of the property. The insurance company, in this case, handles any title issues. So, what happens when the lender has insurance but the owner declines? This creates a situation where the lender sits on the sidelines while the owner takes on the bulk of the title problems. Title problems can resurface after multiple years of ownership. A lender’s title insurance is an integral part of the entire process but only half of the protection necessary to secure a title.
3. Traditional
When purchasing a home, it is within the norms for the seller to purchase title insurance for the buyer. This is considered optional and is more of a customary gesture than a mandatory one. A buyer should not go into a sale expecting this title insurance type to be purchased on their behalf. It is entirely up to the seller but can sometimes be negotiated and added to the final purchase price. This tradition has no set rules, and asking will always be your best course of action.
4. Mandatory
Refinancing your mortgage adds an extra set of responsibilities for the owner and a massive risk for the lender. Purchasing new lenders’ title insurance for the company you want to refinance with becomes mandatory. The old lender’s policy is only suitable for the life of the original loan. When you refinance, replacing the original lender’s title insurance is mandatory. Since the owner changes the original contract terms, this type of lender insurance falls on their shoulders. Before going all in on a refinance, you should always seek out the new lender’s title insurance terms.
Lower Your Risk
Title issues can occur when you least expect them. Preparation is in your best interest, especially when money is on the line. Title insurance is a big deal and should never be treated as a minor inconvenience.
Click the links below for any posts you have missed:
What Do Landscapers Do? What Are the Benefits of Hiring One?
Simple Land Selling Tips to Get Rid of Unwanted Land
7 Creative Ways to Improve Your Home Office
Why Hiring House Cleaning Services Should be Encouraged
How to Choose Sustainable Architecture Firms
Roof Maintenance Tips: When You Should Repair and When You Should Replace it
I’d love for you to join my email list! You’ll receive a notification straight to your inbox which will include links to my latest home project posts! Simply enter your address below.
Thanks for stopping by! Have a wonderful day/night depending on where you are in the world! Go with God and remember to be kind to one another!
Toodles,
[…] 4 Types of Title Insurance: Which One Is Right for You? […]