Title Services and Insurance
Title companies charge to do a title search on the property you want to purchase. They also make money by selling title insurance to both the lending institution and the buyer of a new home.
Understanding Titles
What does the title of a book tell you? The title of a book, or any other published text or work of art, is a name for the work which is usually chosen by the author. Title is the legal way of saying you own a right to something.
Title Insurance Essentials
Title insurance protects lenders and buyers from financial loss due to defects in a title to a property. It’s a one-time cost. The seller often pays for owner’s title insurance to protect the buyer’s equity. If you’re getting a mortgage loan, a title company is necessary for your purchase transaction. They provide the title search and title insurance necessary for your home purchase. The title search looks for title defects like errors in public records, unknown liens, and forgeries.
In the next sections, we will delve further into the factors that affect title insurance cost, explore the average prices, explain how premiums are calculated, and provide tips on how to save money on title insurance.
Title Insurance Profitability
What is the profit margin on a title company?
The Importance of Owner’s Title Insurance
What are the advantages of owner’s title insurance?
Owner’s title insurance protects property for owners and heirs. It covers legal fees to fight issues and safeguards against risks like forgery and unpaid taxes from previous owners. Title insurance lasts as long as the owner retains interest and often covers the total purchase price. Naming heirs in a will makes resolving ownership conflicts easier.
Lender’s title insurance protects the lender’s interest by ensuring a valid title, while owner’s title insurance protects the buyer and helps prevent costly battles in the future. It covers losses from pre-existing defects.