One of the most misunderstood insurance policies is a title insurance policy. Most consumers regard it as a waste of money and just adding to the high closing fees on their purchase or sale.
This is far from true, as according to the American Land Title Association, about 25 percent of all residential real estate transactions have issues with the title. Most are resolved prior to closing; however, some claims and challenges can crop up after you have become the new owner. Examples include a mortgage which has been paid off but never released or a deed without a marital status.
There are two types of title insurance policies that you will be offered at your closing. The Lenders’ Policy protects the bank against possible title problems and you will be required to purchase this policy if you are financing your home. It does not, however, protect your interests. For your…
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