Before we go any further, yes, Owner’s Title Insurance is optional, unlike Lender’s Title Insurance, which is required. And although Owner’s Title Insurance is optional, that does not mean it is not important.
A Lender’s Title Insurance protects the lender from any title claims that may arise. In no way does Lender’s Title Insurance cover YOU. This is where Owner’s Title Insurance comes into play. A one-time payment covers you for as long as you own the property. And the cost of the owner’s title insurance premium is modest in comparison with the potential loss from a claim. Whereas a legal defense of property title may start at $5,000, you can get Title Insurance with Endorsements for a handful of hundreds.
Still, despite the tremendous upside of Owner’s Title Insurance, few homeowners or homebuyers know what Owner’s Title Insurance is!
The Benefits of Owner’s Title Insurance
A title search is performed on each transaction. The title records are only as good as the documents recorded. If a previous owner perpetrated a fraud, committed a forgery or the clerk of the land records failed to record or recorded incorrectly, the purchaser is unprotected without owners title insurance.
With the coverage, the title insurance company incurs the expense of determining the validity of a claim and defending against the claim. If there is a title defect, the title insurance company pays the claim so that the purchaser retains ownership without loss, or compensates the owner for any and all losses incurred as a result.
Title Insurance is a one-time fee, there’s no deductible, and it covers you for the lifetime you hold financial interest in the property!
We at Colony Title want to be your title company and real estate law firm. For additional information, please contact Tee Tillman at 410.884.1160 ext. 3007 or visit ColonyTitle.com today!
About Colony Title Associates:
Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. The founder Tee Tillman has over 23 years experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the area.