Title Insurance
Mandy asks…
Title Insurance?
I understand that I need Title Insurance for my mortgage, however, do I have to have this through the same company that supplies the mortgage?
Point being, my mortgage company have asked $1,700 title insurance (Virginia) for title insurance on a property that is valued at $300k.
As I understand it, this insurance only covers them, and not me in any way if anything goes wrong.
Is this correct?
Building Chicken Coops answers:
First of all, title insurance rates are a set percentage of the purchase price of the house.
Second, the title insurance protects YOU, in case it turns out after all the paperwork goes through, that there's a PROBLEM with you getting clear title (like, some guy 50 years ago willed it to someone else, and a third party who had no right to it, sold it).
So you're not going to get a better rate elsewhere, and it doesn't cover them - it covers YOU.
Carol asks…
title insurance?
what exactly does title insurance cover? is it true you only pay for it once
Building Chicken Coops answers:
You pay for it once every time you get a title to a property. It covers the purchase price of the property, if it turns out there's a problem with your title of ownership to the property. Example: Five owners ago, someone forged the name of the seller, and now the TRUE owner wants the property back. Or, the registrar of deeds made a mistake 25 years ago, and your lot that you THOUGHT you owned is actually the wrong number, and your ACTUAL lot is in the middle of nowhere, or doesn't exist.
William asks…
Title insurance?
I bought an property 2 years ago, and few days ago, my new neighbor sent me a letter. The letter said part of my driveway is part of their property. So i did my own survay and is true.
So does the title insurance have responsibiliy to compensate my loss?
what happen if my title insurance company did not do a survay on my property?
Building Chicken Coops answers:
Maybe, but not necessarily. You should seek the advice of a lawyer in your area.
Maria asks…
What happens if the title insurance company closed business?
I've bought title insurance when I bought a new house 10 years ago. Now, I notice that the title insurance company has quitted and closed business. Does it affect anything? Does it mean no more insurance coverage to my deed?
Building Chicken Coops answers:
Ray, are you saying the title company closed, or are you saying the insurer that wrote the policy is no longer in business? It isn't clear from the information you gave, but here goes:
Usually, the title company does not underwrite the policy. You need to check the policy and see if the insurer is out of business--the title company and the insurer are not the same. If you find the insurer is no longer in business, you should contact the insurance department in the state you live in, and find out if these policies were assigned to another insurer. The state insurance department should be able to tell you whether or not your home is still covered. If the settlement company ( title company) went out of business, but the insurer is still in business, then you have nothing to worry about.
That's where I'd start. Good luck.
Ps- the other person who wrote an answer is wrong. You don't pay on-going premiums for title insurance, it is a one-time payment at settlement of the property.
Mary asks…
What is the difference between Title Insurance and Owners title Insurance?
Hi Friends,
We are about to buy a home in Mason Ohio and the closing is expected to happen in a few days. I was asked by mortgage lender that if I would be intersted in ' Owners title Insurance policy'?
Already there is a fees ($763.00) that I am paying as Title Insurance fees. So do I really need this extra protection of 'Owners Title Insurance Policy' and if so how will it help me to have this extra protection, when already I am paying for one.
Any suggestions or feedback will be highly appreciated.
Thanks
Ram
Building Chicken Coops answers:
The title insurance is the Lender's policy that protects the lender from any liens on that property. The Owners policy is for you, the owner to protect you from any liens that may show up on the property. For example, if in 10 years the county finds that someone else owned part of your land and owes money on it, you would be responsible to pay that if you didn't ave an owners policy. It's def worth it to get it.
George asks…
What is title insurance and can I purchase it and have it work in a foreclosure auction scenario?
The way my county works, all bank-owned foreclosures are sold through a public auction that requires 20% payment at end of auction. I heard that title insurance protects against unknown liens against the property which could very well happen in this situation. Please advise I can't pay rent anymore.
Building Chicken Coops answers:
You are correct in your assumption of what title insurance provides. Before a title insurance firm will provide insurance, they will perform a search of the condition of the title covering the property in question. Contact a local title insurance provider and explain to them what you propose to do, and they will advise you accordingly, as to what liens may be against the property.
