With so much information coming at you as a first-time homebuyer, it can be intimidating to keep track of it all. Between closing costs, title insurance, and mortgage rates, it can be daunting to understand everything that is going on during a real estate transaction. As a result, we created a handy guide for you to know what a title endorsement is if you need one, and how to get one.
Are Title Endorsements Required?
Title endorsements are an addition or limitation in the title insurance coverage of a particular policy. Endorsements provide coverage that is tailored to the individual title insurance policy to fit the needs of the insured for a particular transaction. For the most part, mortgage lenders will require homeowners to purchase title endorsements when they get their Lender’s title insurance policy. However, a borrower can always make a request for an endorsement to provide additional protections for things beyond the standard coverage features. But it should be noted that endorsements on Owner’s policy are exceedingly rare.
Regulation Of Endorsements
The American Land Title Association (ALTA) is the regulating authority that sets guidelines and regulates the various endorsements available. However, there are specific state associations that also regulate guidelines within their designated jurisdictions as well.
Most Common Title Endorsements
With nearly 100 different title endorsements, and more than one can be applied depending on the loan type, property location, and a variety of other variables, there is no one size fits all. When it comes to title endorsements, is highly accurate and is quite personalized to the particular property in question. As a result, it becomes difficult to ascertain the most common title endorsements. However, ALTA Form 4 (condominiums), ALTA Form 5 (planned unit development), ALTA Form 6 (adjustable rate mortgages and negative amortization loans), and ALTA Form 7 (manufactured housing) are some that get used more often than others.
A Title Company You Can Trust: Colony Title
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, LinkedIn, and Google+.