I’m always surprised how few people I talk to know what title insurance New York is, why they need it, and what it will cover for them. Maybe I shouldn’t be surprised, because the majority of homebuyers are still going to go through a real estate broker and they’re the ones that usually explain title insurance to them. Title insurance can be bought from a title agency like MacGregor Abstract.
You may be wondering what title insurance is and why it’s needed. Title insurance is protection against losses that result from defects, such as unrecorded liens, in the title to land, residential and commercial property. A lien is a claim against property for payment of debt or other obligation.
The cost of a title search and attorney review is between $500 and $1,000. So you can see why title insurance can be such a boon.
In addition to having a vested interest in ensuring that the home you’ve purchased is free and clear of any liens or judgments, your lender has an interest in protecting its investment in your property. That’s why lenders usually require that you carry title insurance when you buy real estate with mortgage financing.
Homeowners and real estate investors need title insurance in order to protect their investment against losses that can be caused by defects in the title.
Titles are vital documents that reveal who holds an interest in a piece of property, the type of interest, and what the exact boundaries of the property are. The main purpose of a title is to prove ownership.
If you are buying or selling a home, land, or business, it is important to have a clear and accurate title. If someone else has rights to your property, you need to know about it before you buy or sell any property. You should always get a clear title search and obtain an opinion letter from an attorney whether you’re buying a home or business, selling property or refinancing.
There is a lot of confusion over what title insurance is. Many people don’t understand why they need it or why it’s important. This article will explain exactly what title insurance is and why you should consider purchasing it.
Title insurance protects the buyer in a real estate transaction against losses resulting from defects in the title being purchased. For example, if seller A agrees to sell property to buyer B, and there is some sort of problem with the title that A doesn’t know about, then B can be held liable for any losses incurred by A as a result of that defect. It protects both buyer and seller by insuring their interests in the property. It does not insure against damages that result from normal wear and tear, nor does it insure against a change in value due to market fluctuations.*
Title insurance is usually required by the lender making a loan on real property.
In most cases, State law requires that the purchase money mortgage be insured with an owner’s policy of title insurance. This protects the lender against loss if there are defects in the title which were not disclosed to the lender at the time of closing. Title insurance companies often provide this coverage through endorsements to their policies.