Almost all lenders are required to purchase title insurance for their property, protecting them against any claims and legal fees that could potentially arise out of a problem with the title connected to the property. Lender’s title insurance safeguards the lender against charges made up to the total amount of the mortgage. Title insurance held by the lender protects only the lender against loss– not the borrower. It is, in other words, an indemnity policy.
The property owner will be covered under his title insurance for as long as he or his heirs have any investment in the real estate. This means that the lender is guaranteed protection until the loan is paid off in full. A one-time premium, purchasing title insurance is a cost-effective, hassle free means of avoiding problems like forged signatures in past title transfers, unpaid real estate or tax liens, and any other weak links that could cause a snag.
At Colony title, we’ll make sure you don’t risk running into any complications with your property’s title. Specializing in real estate title insurance in Maryland and DC, our agents will perform a title search, check all past documentation, and seek to uncover any fraud or forgery associated with the title. Any defects that can’t be accounted for will be covered by your title insurance, guaranteeing you won’t face any losses in the future.
If you have questions, the Maryland real estate insurance experts at Colony Title Associates can be reached by calling 410-884-1160 or visit ColonyTitle.com today!