Most home sellers and buyers have been informed that obtaining title insurance will provide them necessary protection over possible title defects; but many remain uncertain about why this is so - or even about what title insurance is. At Assurance Title Services, Inc., we believe we have everything to gain by throwing some light on the subject. The more you know about title insurance and its pricing, the more confident you'll be about coming to us for a policy.
What Is Title Insurance?
Title insurance continues to remain one of the most "unknown" types of insurance, even though more people own real estate today than in years past. At Assurance Title, we believe we have everything to gain by throwing some light on the subject.
Title insurance is a form of indemnity insurance which insures against financial loss from defects in title to real property, liens or other matters. It is meant to protect an owner's or a lender's financial interest. It will defend against a lawsuit attacking the title as it is insured, or reimburse the insured for the actual monetary loss incurred, up to the dollar amount of the insurance provided by the policy.
The first title insurance company was formed in Pennsylvania in 1853. There are two types of policies (owner's and lender's). Just as lenders require fire insurance, nearly all lenders require title insurance to protect their interest in the collateral of loans secured by real estate. Buyers purchasing properties should request title insurance to protect their interest, and most sellers provide title insurance to prove they have clear title to their land. Title insurance is normally a negotiated item within the Offer to Purchase, with the Seller normally paying the cost of the owner's policy. If the buyer obtains a loan, it is buyer's obligation to pay for the cost of the loan policy to protect their lender's interest.The cost: Title insurance is cost effective, for a single, one-time only fee, an owner's title policy remains effective until the property is sold to a new owner, even if that doesn't occur for decades. If down the road you decide to refinance your loan, you will need to provide your lender with a new loan policy, however, the rate is much lower than that of an owner's policy. See our Title Insurance Rate Schedule for a calculation of cost.
The different types of title insurance you require is based on what event is happening. Title insurance is normally required for all three events. We provide information and applications designed to cover each situation, whether the property is residential, commercial or vacant land. The three (3) main event categories are:
- A real estate sale,
- a refinance or,
- a new construction project.
A seller's concern: How much does it cost?
A title insurance policy is much more cost-effective than the other kinds of insurance you have had to purchase. For a single, one-time-only fee, we provide a title policy that remains effective until the property is sold to a new owner - even if that doesn't occur for decades. The price structure is among the lowest - giving you a quality product at highly competitive rates.
Why the Seller Needs to Provide Title Insurance
All prospective buyers will need evidence that their investment in your property is free of title defects. In fact, your contract of sale probably requires it. The title insurance policy that you provide the buyer is a guarantee that you are selling a clear title to your real estate, unencumbered by any legal attachments that might limit or jeopardize ownership. Assurance Title Services, Inc. provides quality title insurance that reassures your buyer that the title has passed the most careful scrutiny.
Why the Buyer Needs Title Insurance
Without a title insurance policy, you may not be fully protected against errors in public records, hidden defects not disclosed by the public records, or mistakes in examination of the title of your new property. As a result, you may be held fully accountable for any prior liens, judgments or claims brought against your new property. However, your policy insures that if such an occasion arises, you will be defended free of charge against all covered claims and paid up to the amount of the policy to settle valid claims. With a title insurance policy issued from Assurance Title Services, Inc. you need never worry that your new property's history will tarnish your bright future.
Assurance Title Services, Inc. – makes a difference
At Assurance title we're proud of our prestigious reputation. Since issuing our first title policy in 1984, we've been committed to our customers and our local community. We believe in treating our customers how we want to be treated, this is a key element to our success. Assurance Title is an independently owned and operated company; our shareholders do not have an ownership interest in any other real estate firm or real estate company(s).