5 Easy and Quick Title Insurance Facts
What is title insurance? Why do I need it? What exactly am I paying for? Title insurance can be a confusing piece of a real estate transaction for many. To cut through some of the confusion here is title insurance in a nutshell:
1. Title insurance protects the home owner’s financial interest in the property against losses from title defects, liens, or competing claims of ownership. Protects from day of ownership into the past!
2. There is a one-time title insurance fee charged at closing, and varies based on the value of the property.
3. A lender’s title policy will protect the mortgage lender’s financial interest in the property, and an owner’s title policy will protect the owner’s. In order to approve a mortgage loan the lender will generally require the purchase of a lender’s policy.
4. The Real Estate Settlement Procedures Act (RESPA) entitles a buyer/or seller to choose their own title insurance company – a mortgage lender, realtor or bank cannot require that a particular company be used.
5. The cost of the policy is sometimes lower when another policy on the property was recently issued. Also, called a re-issue credit.
Title Junction is a full service real estate title company serving the area of Fort Myers, Cape Coral and the entire state of Florida since 2005. The company handles a number of real estate title services for both commercial and residential properties. Employees of Title Junction can also act as a witness in courtesy closings as well as an escrow agent or a notary public. Please contact Jennifer Ferri of Title Junction, LLC for further information @ 239-415-6574 or http://www.title-junction.com.
Posted on March 8, 2013, in Title and tagged Bank, Buyer, Cape Coral, Closing, Fort Myers, Jennifer Ferri, Lender's Policy, Liens, Mortgage Lender, Owner's Policy, Property Guiding, Real Estate Transaction, Realtor, RESPA, Seller, SWFL Real Estate, The Real Estate Settlement Procedures Act, Title Defects, Title Insurance, Title Insurance Fee, Title Junction, Title Work. Bookmark the permalink. 2 Comments.