Title Insurance Policy And Home Buying
When you are buying a house, one of the things you need to pay for in the closing fees is the title insurance policies. This is done usually by a third party company. Title companies offer different rates for their clients, so what you can do is to look for a title company that will offer you a better deal than the one your lender is recommending. Since the title insurance fee is already considered a third party originating fee, you can find a more suitable arrangement for yourself.
When you get a title insurance policy, the title company traces back the history of the title from the most recent person who handles the deed (or the current grantee's name) going backwards in its own history. Searching through the grantee and grantor will give you an idea of how the title came to be in the current grantee's hands. In addition to that, a title search will look for proofs that all encumbrances of the title have already been paid off. Depending on what kind of coverage you pick for your title insurance, you can have several things inspected with the title. The basic of which is to check whether the title is authentic, whether all the signatures in all related documents are correct and not forged, if the deed has been properly recorded, or if there are other encumbrances to the title.
On the side of the lender, the coverage of lender's title policy may extend to checking the liens attached to the title. This is important if, say for example you want to buy a house and the former owners of the house went through a divorce where the property should have been surrendered to the other spouse. It would also reveal if there are unrecorded easements and access rights to the property that could either raise or lower the value of the property. For example, if you're looking through Reston Homes for Saleand you are in the process of buying a piece of Reston Real estate, the lender would want to know if you have private access to the beach or if part of the property is being used by other people to gain access to the beach.
Some people want to reduce the amount they pay upfront for a house by questioning each and every item in the list of things that they need to pay. However, getting a title insurance is also to protect your own interest. Buying a house is a huge financial commitment. Imagine if you made that commitment without having to check the title first and you find out that somebody else has the right to share the property with you? Or that you got a fake title or that you're not enjoying the entire land area that you should be enjoying?
by: Muhammad Smith