Now this is an extreme case scenario. But imagine I didn't go through a title company. I would own this house and there would have been a 1st mortgage before my mortgage that could have foreclosed out from under me because the payments weren't made.
Buying a home can be the wisest and most rewarding investment you'll ever make. Title insurance plays a major role in making certain home ownership is safe and secure. It protects you against a number of title defects that could jeopardize your interest in the property you have just purchased, such as an unsatisfied mortgage lien, unpaid taxes, judgments or other recorded claims against the property. Claims could arise through easements, use restrictions or other existing covenants, or it could be a hidden risk. To name only a few of these:
fraud or forgery in previous documents
improperly executed deeds
improperly filed liens and mortgages
undisclosed heirs or others having a claim to the title
The list could go on and on. Owners title insurance eliminates the risk of loss to you through claims against the title as insured in your policy. The underwriter assumes all legal expenses involved in adjudicating claims and protects you against any loss whatever arising from claims affecting your title, even though they may occur though errors made in the public records.
Part of receiving a Title Insurance Policy is a title search is a detailed examination of the historical records concerning a property. These records include:
property and name indexes
The purpose of the search is to verify the seller's right to transfer ownership and to discover any claims, defects; or other rights or burdens on the property.
Title insurance is your policy of protection against foreseeable or unforeseeable claims against your home. Title Insurance plays a major role in making certain home ownership is safe and secure.
Remember, there is only ONE PREMIUM to pay at the time of the issuance of the policy and there is no further premium or renewal to be paid for as long as you or your heirs have an interest in the property.
I hope you find this information, in part supplied by North American Title Company, helpful
Brian L. A. Wess
RealtorÂ®, Broker Owner
CRS, CDPE, GRI, ABR, ASR, CSR, CNS, SFR, e-PRO
Military Relocation, Residential & Investment Specialist
Infinite Horizons Realty - Metro Brokers
Colorado Springs, CO
COLORADO REAL ESTATE...DONE RIGHT!â„¢
Syan Real Estate
Call/Text: (505) 730-8181
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Keller Williams Partners
The seller typically picks the title company and pays for it. If you insist, you can pick your own title company and pay for it yourself, but that's not very common. Good luck to you!