Title
insurance protects the holder from any losses sustained from defects
in the title. It’s required by most mortgage lenders. Here are five
other things you should know about title insurance.
1.
It protects your ownership right to your home, both from fraudulent
claims against your ownership and from mistakes made in earlier
sales, such as mistake in the spelling of a person’s name or an
inaccurate description of the property.
2.
It’s a one-time cost usually based on the price of the property.
3.
It’s usually paid for by the sellers, although this can vary
depending on your state and local customs.
4.
There
are both lender title policies, which protect the lender, and owner
title policies, which protect you. The lender will probably require a
lender policy.
5.
Discounts on premiums are sometimes available if the home has been
bought within only a few years since not as much work is required to
check the title. Ask the title company if this discount is available.
Reprinted
from REALTOR® Magazine (RealtorMag.Realtor.org)
with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright
2008. All rights reserved.