Home Title Insurance Policy

This BLOG On Home Title Insurance Policy Was Updated On May 2, 2017

Home title insurance policy is a contract of indemnity between the insured and the insuring company relating to the title to the land described in the policy, protecting the insured against loss of damage by reason of defects, liens or encumbrances of the insured title existing at the date of the policy and not expressly excepted from its coverage. All mortgage lenders will require clear title before they issue a clear to close and close and fund the mortgage loan. It is the title company’s job to make sure that the title to the property is clean and does not have any liens or clouds in the title insurance. Once the title is clear and clean of any liens or defects, the home title insurance policy will be issued and the mortgage lender can rest assured that the property they are using for collateral has clear title and they are in first position.

Home Title Insurance Policy Explained

The title insurance policy is issued after a complete search and examination of the public records and shows the condition of the record title, including any money obligations outstanding against the property, easements and other matters which may affect the rights of ownership, possession and use of the property. In the event if the title has defects and liens that do not show up on public records and the title company missed it and issues a clean title insurance policy, the title company is liable for the lien or the defect in the title and the mortgage lender as well as the homeowner has nothing to worry about because this is what the title company’s role is: To Insure That The Property Has Clean And Clear Title.

Home Title Policy Insurance Protection

Title insurance protects the “record” title, insuring it is good subject only to the exceptions expressly set out in the policy. lt also insures against certain matters which do not appear of record, such as forgery, identity of parties, incompetence of former owners, interest of missing heirs, and status of individuals not having the “right” to sell property.

Types Of Home Title Insurance Policies

There are different types of policies. Owners™ policies are issued to real estate owners. Purchasers™ policies are issued to purchasers of real estate under contract. Mortgage policies are issued to mortgage companies. In addition there are several other special forms of policies. There is a type of policy to meet the requirements of almost any form of real estate transaction.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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