- What is Title Insurance?
- Common Title Issues That Title Insurance Can Protect
- Title Insurance Costs and How They Vary by State
- Is There a Cost Benefit to Using the Same Title Company From Your Last Policy?
As a real estate professional, you're likely familiar with the term title insurance, but what exactly does it entail?
There are two main types:
Insures the purchaser or owner against a loss that could arise due to a defect in their title or ownership of property, such as forgery or hidden liens.
Protects mortgage lenders, making sure their loan is backed for the property and have a priority lien.
If a legal issue comes up, like someone challenging your ownership, we pay for the loss caused by the defect in the title up to the amount listed in your policy.
Even with a solid title search, some risks can stay hidden. These title risks might not show up until months or years after a property has been purchased. That's where a title insurance policy can help.
Here are some common issues it protects against:
- Intervening liens or encumbrances which arise between the date of execution and delivery of the deed or mortgage, but prior to recording of such instrument(s)
- Forged deeds, mortgages, satisfactions, or releases of mortgages and other instruments
- Liens for unpaid taxes including estate, inheritance, income, or gift tax
- Missing or undisclosed heirs
- Mistakes in recording legal documents, indexing of public records, and reports furnished by tax officials
- Deeds from defunct corporations or people not legally allowed to sell the property (minors, aliens, or people of unsound mind)
- Failure of spouses to join in conveyances
- Unprobated wills
These hidden risks can lead to expensive lawsuits or even loss of title. That's why you need title insurance – for peace of mind.
Wondering how much title insurance premiums cost? It depends on where the property is located.
In New York, policies are regulated by the state, so they're the same no matter which company you choose. But other fees—like title search charges—can vary, so it's smart to ask for a full quote from title insurance companies.
Oftentimes, no. In places like New York, the state sets the prices and discounts for title insurance—like when you're refinancing a mortgage. Some companies, automatically give you any discounts you're eligible for. But others might only apply those title premium discounts if you or your lawyer ask for them and show proof that you qualify.
From lightning-fast turnaround times and a proactive clearance of title exceptions to a highly experienced team of closing professionals, we’re here to help. To explore title services, insurance policy options, or get started with an order, it’s easy to reach us!
Email us at info@vergetitleagency.com, call us at (646) 225-9570, or submit an inquiry using the form below.