Colony Title Associates

2 Questions Every Home Buyer Should Ask About Their Title Insurance

Buying a home can be stressful. Don’t let a defective title add to that stress. Protect your property interests with title insurance!

Whether you are buying or refinancing your home, title insurance plays a huge role in the transaction. Title insurance is really a two-part transaction. First, the title insurance company searches for all property records to ensure that you are getting the title to the property free and clear of any liens. This process verifies that the seller actually owns the property. However, sometimes, these searches reveal a defect associated with the ownership of the property or certain liens were not properly released, which means that the title is defective. Often, it’s a clerical error, but in more significant cases it may be a more substantial issue like an issue with a deed or even a lien on the property. The defect must be fixed before closing so that the buyer can get the title free and clear of any issues. The next step is for the underwriting company to issue a title insurance policy to protect you from any of these defects affecting your right to own the property. Here are a few questions that every home purchaser needs to ask to make the smart choice when it comes to knowing what kind of title insurance to get.

What Coverage Do I Need?

The average policy is pretty standard these days. There are two different types of title insurance policies: a lender’s policy and an owner’s policy. If you are getting a loan from a mortgage company to help purchase your home, you’ll be required to buy a lender’s title insurance policy. However, there is no requirement to buy an owner’s title insurance policy. Yet, you should know that the lender’s title insurance policy only protects the lender’s interest in your home. If protecting your own interest in your property is essential to you, then an owner’s title insurance policy should be something you consider investing in.

Who Usually Pays?

This all varies from state to state. In some places, the buyer pays for one policy and the seller will pay for the other. However, in most states, the buyer pays for both the lender and owner’s title insurance policies which go into the closing cost at settlement.

A Title Insurance Company You Can Trust: Colony Title Associates

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 and sell 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+.