What is title insurance and who does it protect?
Title insurance is a one-time policy that is purchased during a real estate closing to protect the property owner and/or lender against issues that may arise. Issues or defects related to a property’s title discovered before the sale can result in financial loss without proper coverage.
When a title search is performed it can uncover issues such as liens, forged deeds, recording errors or unpaid property taxes. Keep in mind that some title defects may still surface later. Fortunately, title insurance serves as a financial safeguard that covers legal defense costs and compensates for monetary loss if someone challenges a property’s ownership rights.Owning a “clean” title is essential to having secure ownership of a property. Without title insurance, the buyer or seller can be exposed to costly legal battles or claims if title issues emerge after closing. A smart buyer carries both a lender’s policy to protect the mortgage lender’s interest and an owner’s policy to protect their own interest in the property.
What does title insurance cost and when is it issued?
The cost of title insurance will be dependent upon the assessed property value and the local insurance rates. Title insurance is paid in full by the buyer as a part of the closing costs. The good news is that once you pay it, the coverage lasts as long as you or your heirs own the property.
An overall check list of issues title insurance protects against:
- Fraud or forgery in prior deeds
- Undisclosed heirs or missing signatures
- Unpaid property taxes or liens
- Errors in public records
- Boundary disputes or recording mistakes
To learn more contact Landmark Title Nevada today to speak with one of our title experts.