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Title
Insurance = Peace of Mind
Purchasing a home is probably the single biggest
investment you will ever make. Before closing on the house, you'll want
to know that no other individual or entity has a right, lien or claim to
the property.
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Determining that your rights and
interests to the property are clear is the business of a
title insurance company. |
For a modest, one-time title insurance premium,
you will receive continuous title insurance protection in an amount
equal to the purchase price of the property or its current market value.
This premium typically includes your "owners" policy as well as the
"lenders" policy.
One of the marked advantages of title insurance
is that prior to a policy being issued, the title insurance company
completes extensive research into relevant public records, maps and
documents to trace ownership of the property and determine if anyone
other than you has an interest in the property. Through its research,
the title insurance company can usually identify any title problems that
may arise and have these problems cleared-up prior to closing.
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Your title insurance owner's policy will
describe the property and outline any recorded limitations on
your ownership. It will also set forth the title insurance
company's responsibilities should any claim covered by the
policy terms arise. Typically your title insurance will protect
you from loss:
- If someone contests your title in legal action (the
title insurance company will defend the title at no expense
to you), or
- If there is a title defect that cannot be eliminated
(the title insurance company will protect you from financial
loss - up to the amount of the policy).
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