Real estate is one of the most paying-back business, true.
But, it is also one of the most vulnerable businesses. What if property that
you bought with so much vigor and zest, turns out to be a loss of money? There
are so many types of insurance policies that can cover the loss to your
property. However, have you heard of Title insurance policy?
Millionaire, successful entrepreneur and a famous TV
personality Dean Graziosi suggests that never purchase any property without
first making its title insured. Title insurance helps you to use your property
as you like.
Dean Graziosi is a bestselling author and owns an online
blog. From years, he is teaching novice how to successfully launch their real
estate business. He has over 20 years of experience in real estate. Dean
claims that he has learned so much in these few years (while teaching novice)
that he had not learned in almost two decades. He emphasizes use of modern ways
in real estate business and title insurance is one of them.
What is Title
Insurance?
Title insurance is used to protect you from any loses or
damages caused to the property before you purchased it. Some of the general
characteristics of title insurance policy are given below.
·
Most appealing factor of title insurance policy
is that it covers past events.
·
If you have your property title insured, the
company will pay for any damages caused to the property before you bought it.
·
The title insurance policy does not cover
damages caused to the property after you purchased it.
·
Most of the title insurance deals include legal
expenses that might be necessary to investigate, litigate or settle an adverse
claim.
Title Insurance
Coverage:
There are various forms of title insurance coverage. However,
there are three major types of coverage options, most of the individuals choose
one of these options.
1- Basic Owner's Title
Policy:
·
It covers: Clear title to the property
·
incorrect signatures
·
forgery and fraud
·
mistakes and defects in records
·
encumbrance or judgment
Basic Lenders Title
Policy Coverage:
·
unrecorded lines and mechanic's lines
·
access rights
·
unrecorded events
·
unrecorded documents
·
defects in the property
Extended Owner's
Coverage:
·
building permit violations from previous owner
·
subdivision maps
·
covenant violations from previous owners
·
living trusts
·
structure damage from mineral extraction
·
variety of encroachments and forgeries after
title insurance is issued
Lender's Policy:
·
It is also known as Loan policy or mortgage
policy.
·
It protect lender from unknown defects before
purchase of the property.
·
It prevents lender from certain interests that
are hidden from lender at the time of purchase.
·
This policy is not good for a real estate
purchaser as it protects rights of the lender.
Owner's Policy:
·
This policy is meant for owners, purchasers. It
is most suitable for real estate agents.
·
It covers any damages caused to the property
when it is in your custody.
·
This policy gives you protection from loss.
·
It provides you legal assistance.
When Title Insurance
is most useful:
Title insurance is useful in most of the cases; however,
some of its benefits are given below.
·
It protects you from undisclosed heirs.
·
it protects you from forged deeds, mortgages,
wills, releases and other documents
·
False impersonation of true landowner.
·
deeds by miners
·
expired power of attorney and other expired
documents
·
false affidavits of heirs or death
·
probate matters
·
frauds
·
Deeds and wills by mentally ill people
·
conveyance by divorced spouses
·
rights of divorced parties
·
adverse possession
·
error in tax records
Get More Information >>>
