Title Insurance in Washington, D.C.
What Is Title Insurance — Is It Important and Why You Need It
Title insurance is a policy that covers mortage lenders or homeowners against losses related to title, or ownership of the property. The title insurance protects defects before closing, such as unpaid liens, recording errors, forged deeds, boundary ro access issues, or unknown heirs. Title insurance covers in the past occurrence while other insurances cover for destruction in the future. Here is an example why title insurance is important:
Examples:
- You buy a home and there’s a hidden lien against the property for repair of the roof. Perhaps the previous owner did not pay the contractor or did not pay the property taxes. Now the unpaid bills is your headache – and your lender’s because is collateral for the debt.
- You buy the house, and later determine that there are missing heirs of a prior owner that have been found and claim the home belongs to them, not you.
To prevent problems a title search is done to make sure these things are done correctly before the closing and in a title search –an examination of public records to confirm who owns the property is confirmed. HOWEVER, if the problem happens, then title insurance pays out the those rare instances when the title search misses something and legal claim is made. THIS COVERAGE PROTECT HOME OWNERS.
WHY IT MATTERS:
- Risk Transfer: Shifts the financial risk of covered title defects from you to the insurer
- Due Diligence: Professional search, examination, and curative work reduces the chance of post-closing suprises
- Marketablility of Title: A clean, insured title improves resale and options and financing.
- Peace of Mind: If claims happen, you have title insurance
Should you buy title Insurance? Is title insurance important? Is title insurance necessary?
The mortgage lenders will typically require you to purchase the lender’s policy when you are buying a home. Owner’s title insurance is optional, but purchasing it provides peace of mind. An owner’s title insurance policy would protect you if there were disputes over the title. For example, if a hidden lien against your home popped up, the policy would pay the debt, protecting you against a lawsuit from creditor.
DC MISTRY CLOSING WORKS WITH THE FOLLOWING TITLE INSURANCE
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COST and TIMING:
- One-time Premium: The title insurance premium is paid at closing.
- Rate Structure: Premiums are based on policy amount and filed/approved rate schedules.
- Quote: DC Mistry Closing will provide clear, and written estimates before closing.
Compliance & Advisory Note
This is page is for general informational purposes only and does not constitute legal advice. Coverage is determined solely by the terms of the issued policy(ies) You are encouraged to consult counsel regarding your particular facts, risk tolerance, and desired endorsement.
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