Home |  Contact Us |  Bookmark This Page
Listings Available Today   

 Welcome to the BillBrownRealty.com Blog

2012-02-14 11:29:26
ARE YOU OBLIGATED TO BUY TITLE INSURANCE AS A BUYE

Real Estate Today

Are you obligated to purchase title insurance as a buyer?

Cash buyers don’t have to pay for title insurance, but should ask the seller to pay for an  “owner’s policy” at closing. If you are getting a mortgage, the lender requires a “lender’s policy” to insure their lien. This is usually paid for by the buyer at closing.

            The “owner’s policy” coverage lasts as long as you or your heirs own the home. The “lender’s policy” will last as long as the mortgage remains on the property. The “lender’s policy” covers only the lender’s interest, but indicates that the title is probably clear. However, no search is 100% dependable; therefore, owners also need an “owner’s policy.” If you do not get an owner’s policy you will have no long-term coverage.

            Title insurance protects you from past claims prior to ownership, not future events. This is a contrast from life or casualty insurance, which protects you from future events after the policy is issued. 

            As with most types of insurance, you can upgrade either policy. A lower-priced standard policy will not cover you for false claims that arise after you purchased the property. Many events beyond your control can reduce the value of your home after you buy it. For instance sub-contractors who claim they have not been paid by the builder may put a lien on the home after you have bought it.

            To deal with these issues, an expanded coverage policy was developed called the ALTA Homeowner’s policy which will cover these types of claims. If you refinance, you will also need to provide a new lender’s policy. This will assure the lender that no liens or unsatisfied problems or encumbrances have been placed against the home.

            There are many good title companies in our area, each providing various services, many at no charge. The sellers choose the title company since they are the ones who usually pay for the owner’s policy. However, that can be another negotiable point.  Contact your Realtor who can recommend a good title insurance company. Until next week, keep smiling. Email your questions to billbrown@dishmail.net.

 
Blog Archive
2012-02-27 10:56:14
WHY SHOULD I PURCHASE A HOME IN 2012?

2012-02-18 22:14:43
BUY A HOME AND HAVE NO MORTGAGE PAYMENTS

2012-02-14 11:29:26
ARE YOU OBLIGATED TO BUY TITLE INSURANCE AS A BUYE

2012-02-07 12:21:52
WHAT IS TITLE INSURANCE?

2012-01-30 14:44:56
IMPROVED HOUSING MARKET!

2012-01-23 12:01:52
OPTIMISM CONTINUES TO BUILD IN THE HOUSING MARKET

2012-01-17 11:06:15
HAVE YOU GOT THE WINTER DOLDRUMS?

2012-01-09 12:32:30
INTEREST RATES LOWEST IN HISTORY

2012-01-03 11:04:48
NEW YEARS RESOLUTION

2012-01-03 11:00:56
EXISTING HOME SALES CONTINUE TO CLIMB

2011-12-19 10:14:33
HOMES SALES HAVE BEEN INCREASING

2011-12-12 10:53:48
TRYING TO SELL YOUR HOME DURING THE HOLIDAYS?

2011-12-05 10:28:58
HOME FOR THE HOLIDAYS!

2011-11-28 09:59:59
“WHY DO WE NEED A HOME INSPECTION?”

2011-11-21 10:47:54
TIME TO BE THANKFUL

2011-11-14 09:59:07
UTAH CONTINUES TO BE AT THE TOP OF THE CHARTS

2011-11-07 09:39:22
VETERANS DAY

2011-10-31 12:00:28
IS FORECLOSURE IN YOUR FUTURE?

2011-10-24 09:46:29
ARE OUR HOMES READY FOR WINTER?

2011-10-20 09:14:53
CAST YOUR VOTE

2011-10-13 11:33:13
HOUSING KEY TO ECONOMIC RECOVERY

2011-10-06 09:25:37
WHAT DO REALTORS DO?

2011-09-29 12:30:02
HOME SALES RISING

2011-09-23 11:41:04
SMART REAL ESTATE INVESTING

2011-09-13 09:52:19
HOME AFFORDABILITY

Click here to see ALL articles.


Comment on this Article

Your Name:
Your Email:
Comments:
Verify:  Please enter the numbers shown to help eliminate spam.