What is Real Estate Title Insurance?
It protects real estate owners and lenders against any property loss or damage. Damage experienced because of liens, encumbrances or defects to the property. So, each title insurance policy is subject to specific terms, conditions, and exclusions.
How does title insurance differ from other insurance?
It insures against events that occurred in the past of the property. Also, the people who owned it, for a one-time premium paid at the close of the escrow.
What does it cover?
Title Insurance protects against claims from defects. Defects are things such as another person claiming an ownership interest. Also, recorded documents, fraud, forgery, liens, encroachments, and easements. Also, other items that specify in the insurance policy.
Who needs it?
Purchasers and lenders need title insurance to insure against various possible title defects. The buyer, seller, and lender all benefit from the issuance of title insurance.
How is a title insurance policy created?
The escrow officer or lender opens the title order first. After that, the title agent or attorney begins a title search. A Preliminary report gets issued to the customer for review and approval. All closing documents record upon escrow’s instruction. After confirming recording, demands gets paid, and funds disbursed. That all creates the actual title insurance policy.
What is escrow?
Escrow refers to the process in which a third party holds the funds of a transaction (such as the sale of a house). Held often by the title company or an attorney in the case of real estate. This is pending the fulfillment of the transaction.
What are the title insurance policy types?
The Owner’s Policy insures the new owner/home buyer. As a result, a lender’s policy insures the priority of the lender’s security interest.
Crossland Title Agency in Knoxville TN