What is a Title Endorsement?

You may have heard of title insurance before, but have you ever heard of a title endorsement? With all the technical terms that come along with taking proper care of your home, this may be one you’ve never come across, and it could benefit you greatly.title-endorsements

What exactly is it?

A title endorsement is an addition to the coverage of a title insurance policy, and is tailor fit to the needs of the policy holder. Title endorsements are usually required for the lender’s title insurance policy, but are less common among owner policies. A title endorsement can be bought when a home owner wants extended coverage, or if a specific title issue could possibly affect the property down the road. The range of endorsements vary, and include such issues as access, foundation, survey, contiguous land, assessments, and federal truth in lending.

An example of such an issue involves contiguous land. An endorsement can be issued when a individual purchased two pieces of land side by side, with the intention of using the two plots together. The endorsement would assure the owner that these two parcels are indeed connected, and no thin strip of land owned by a third party would prevent the merging of these two plots.

Rules and regulations

The most commonly used form of title endorsement falls under the jurisdiction of the American Land Title Association (ALTA). The ALTA is the authority that creates the rules and regulations under which the different types of endorsements are sold.

Costs

A title endorsement is not a recurring payment, and is a fee you will only pay once. The costs varies by underwriter and by state, but will usually fall in the range of $25-$75.

About Colony Title Associates

Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings in Washington DC and the Delmarva area every year. The founder Tee Tillman has over 23 years of 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 Maryland area. If you have any questions concerning issues that title insurance protects you from, feel free to contact us at 410 884-1160 or visit ColonyTitle.com today!

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