Friday, November 2, 2012

What You Need to Know About Title Insurance Fees

What You Need to Know About Title Insurance Fees

If you are a property owner who is looking to sell or refinance your home, then you need to make sure that you are aware of some things regarding your title insurance policy. If you are not familiar with what that policy is, it is a document that helps to protect your interest in your property.

This protection helps to cover the cost of potential problems, defects or claims that are related to the title of the property in question. These policies are usually taken care of at the same time you finish closing on your home.

This type of policy is very important for you to have. Since most properties have had several owners during the course of its life, if any problems arise where there are claims being made against the deed to your home, you have a situation that can't be ignored.

If you sell your home and the buyer discovers a major problem that was not disclosed or made available when they did a property title search, you could be held legally liable if you never purchased this type of policy when you purchased the home.

When you take everything into consideration when it comes to purchasing a home, these fees only amount to a very small percentage of all other costs that need to be paid. This is one investment you shouldn't ignore.

It is much easier and far cheaper to pay the title insurance fee rather than suffer the legal costs that would incur if there were any claims made against you and the property that you might be held responsible for.

Keep in mind that if you are taking out a mortgage, your lender will require you to purchase this type of policy before you can close on the house. It doesn't matter how many times a search was performed to make sure that there weren't any errors over the course of the home's history each time the title was transferred.

In order to protect you and the lender from any potential missed errors, it is in your best interest to purchase a policy. Some lenders will help you with the title insurance fees if you are in the process of closing.

Be aware that the amount of policy varies according to which state you live in. There are also some other factors that will be used to determine how much you should pay. In most cases it is only a small percentage, generally three to five percent of what the total purchase price is for your home.

Even though your lender will be able to recommend several good insurance businesses, you may want to shop around to see who will give you the best deal. Take your time and make sure you understand that there are different levels of coverage before you pay any title insurance fees.

Article Source:

Article Source: