Whenever you purchase a home,
you will hear about
Title Insurance.
So what is Title Insurance
and why would you want to spend your money on it?
Basically...Title Insurance is a policy that guarantees the title to a piece of property
is clear and protects against problems that might arise
connected to the title of the property.
Real Estate Agents will often hear things like....
"I knew the previous owner so I'm sure there is no problem"
"A title search was done, so why do I need insurance?"
or
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| Photo by ilovebutter |
Keep in mind, when you purchase real estate, you are not only purchasing the building
but also the land and the right to use the property.
There were owners before the current seller
& the land existed before the building...
so it is possible for problems to arise years down the road.
If you are financing your home purchase...you will most likely be required
to purchase a Lender's Title Insurance policy
to protect the lenders interest in the property.
This protects the lender, but not any equity you may have in the property.
An Owner's Title Insurance policy is an additional one time charge
that will cover your interest in the property as long as you own the property.
You don't have to pay a premium every year.
It is paid once and you are protected if a valid claim arises on your property!
How often is there really a problem with a title?
More often than you might think. Usually the problems we run across
are small issues, but even small title issues can be costly to remedy
if you are not protected by Title Insurance.
If you are purchasing property, it is a good idea to speak with
your Real Estate Agent to decide if you should consider Owner's Title Insurance.
For more information about Title Insurance and other questions about
purchasing real estate, feel free to call Brenda at (207)784-3800 or
e-mail brenda@fontaineteam.com.
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