Clarksville Real Estate Expert Ron Dayley explains:
Title Insurance (TI), is a policy that is purchased only one time when you purchase or sell your home/property. You pay only once for this coverage, unlike other forms of insurance, there are no annual payments to keep your Owners TI Policy. The only exception is if you refinance, your lender will require a new Lenders TI Policy, which you will pay at a reduced cost (substitution rate) the mortgage company needs to makes sure there are no new issues with your title. TI is regulated by the State of Tennessee Insurance department, and the cost of insurance is determined and controlled by them.
Do I need TITLE INSURANCE?
We are all familiar with homeowner’s, car, life insurance, but what about title insurance and why do you need it?
Title insurance protects one of your most valuable investments, your real estate purchase, most likely your home. When you purchase property, the seller has many laws that protect them and their heirs, and others who might have a claim to that property in some way. What TI does, is uncovers any unpaid taxes, mortgages, judgments, liens against any prior owners. They also search and look for easements and other court actions or recorded documents that can affect title to the real estate you are purchasing.
WHAT DOES IT DO FOR ME?
Title insurance also protects against loss from claims on real estate which cannot be discovered by public records. This is probably the biggest benefit of TI. An example of this is something that has become more and more common, fraud. If someone tried to claim title to your home, using, falsified or forged documents, if there was confusion regarding common names, or an error in the records regarding legal descriptions, etc… these contingencies would be covered in your TI policy.
WHY IS IT IMPORTANT TO ME?
Title Insurance protects you against any claims that could arise, they would defend your title in court if necessary, at their expense. They would bear the cost of settling a claim if it proves valid in order to perfect your title and keep you in possession of your property.
So, in conclusion, Title Insurance is a one-time policy that brings you a lifetime of protection and peace of mind, knowing that the home or property you purchased is protected by Title Insurance.
Ron Dayley
Montgomery County Real Estate