Considering there are few claims on title and very little paid out to claimants it is nothing more than a way for attorneys to make money.
I hope that info was usefull :)
I am a mortgage Originator in VT and if I can ever help give me a call!
You may be confused to the disignation of "agent" in the profile, I for instance am a Realtor, not an insurance agent. I believe most people who answered you are also Real Estate Agents.
We all have much varied life experience, that are graciously sharing with you.
Good luck in your search.
I can think of one - unlike other insurance providers, TI companies can actually control the risk. They do this by performing their own title searches or maintaining their own databases. Your auto company cannot control your driving, but a TI company can essentially make the bet that they've done a good job in solidifying the chain of title.
My opinion; I would pay for it and have on every home I have purchased. Even our investment purchases.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
What is a title? What is title insurance? What is a title company? Many people are asking these questions and it is coming up even more frequently with the foreclosure mess. Here is a list of definitions taken from Financial Real Estate Handbook Sixth Edition.
â€¢ Title - the evidence one has of right to possession of land.
â€¢ Title Company - an agency issuing the policy of a title insurance company.
â€¢ Title Insurance Company - A company which issues insurance regarding title to real property.
â€¢ Title Insurance - Insurance against loss resulting from defects of title to a specifically described parcel of real property.
â€¢ Title Order - An order for the search of a title to some parcel of property, eventually leading to the issuance of a policy of title insurance.
â€¢ Title Plant - A filing of all recorded information to real property, paralleling the records of the county recorder's office, although the filing system may be different.
â€¢ Title Search - A review of all recorded documents affecting a specific piece of property to determine the present condition of title.
â€¢ Defective Title - Title to real property which lacks some of the elements necessary to transfer good title.
â€¢ Preliminary Title Report - A report showing condition of title before a sale or loan transaction. After a completion of the transaction, a title insurance policy is issued.
When you have questions related to title, ask a real estate attorney or title company.
Tammy Hayes, Realtor, Sandals Realty, Punta Gorda, FL email@example.com
As a former life insurance agent, I can tell you that nobody wants the coverage untill it's too late...yes, you may never need the coverage, and IF nothing goes wrong, then your gamble pays off. IF on the other hand you do need the coverage, you'll be patting yourself in the back as the smartest businessman around!
If you use a Lender it will be required. If you are paying cash and financing yourself, you should require yourself to purchase it!
See below link for a more in depth explanation...
Hope this helps!
First of all, Title insurance insures either the lender or the owner against any claims arising from title issues down the road. Letâ€™s say that the seller sells you his home. The title company performs the title search and comes back clean. Well, find out five years down the road that there was another owner in joint for that property. Say a wife or kin or anyone. They didn't want to sell the property, but the title company didn't catch that. Legally, you would no longer own that property. The seller never had a fully marketable title. Therefore, since the title company did the search the insurance policy will be responsible for compensating you and the lender if you have title insurance. If you didn't purchase an ownerâ€™s policy, you would receive no compensation and would not own the property any longer. The lender, however, because they had you purchase a policy, would be compensated. Lender Policy - insures lender, Owners Policy - Insures you.
This is a very simplified explanation and I have to admit that this is very unlikely. I have tried to use a very simple example. There are literally hundreds of thousands of ways that your title insurance would come in handy. It doesn't always have to be this cut and dry. Title issues can be very complicated and it worth the extra money to make sure you are covered in the future. It's kind of like paying someone huge sums of cash and forgetting to get a receipt. It's a good idea to have proof that you do actually own the property you paid for at closing. Hope this helps!
Your title insurance owner's policy will describe the property and outline any recorded limitations on your ownership. It will also set forth the title insurance company's responsibilities should any claim covered by the policy terms arise. Typically your title insurance will protect you from loss:
if someone contests your title in legal action (the title insurance company will defend the title at no expense to you),
or if there is a title defect that cannot be eliminated (the title insurance company will protect you from financial loss - up to the amount of the policy).