Tehama Country Real Estate

Tehama Country Real Estate – 3 What Is Title Insurance and Why Do Home Owners Need It? Real Estate Spotlight By Alex Mason piece of property may change from a lot of hands over the years, and your title insurance is there to see that the current owner is protected. A Legal disputes are the primary reason why a home owner needs title insurance to verify ownership and clearly define who is the legal owner. In many cases, title insurance is not only good business sense, but it is required by the lender. What Does Title Insurance Protect You From? The list is a long one, and in a complicated world of today's financial matters, your title insurance pro- vides many protective elements. Home ownership fraud is on the rise as criminals seek to take ownership by stealing the title. This is an act of fraud that may be thwarted by having proper title insurance to cover you. In addition, the title insurance will prevent a contractor from claiming non-payment and slapping the property with a lien. How Long Does Your Title Insur- ance Last? The title insur- ance will have a policy to cover the owners and heirs for as long as they are obliged with a mortgage payment to the lender. If the home is sold, the owner is free and clear from the poli- cy, as the new own- ers will set up their own title insurance claim. Title Insurance Fees The rate for your title insurance may increase slightly if the property value greatly appreciates. The home owner will pay a modest increase to obtain full coverage services. Another adjustment that will be required by the lender is when a home owner chooses to refinance the property. The terms and conditions will vary from state to state and with each lender, but the home owner can expect to pay a similar rate as their current title policy. Refinancing title insurance is not an option with many lenders, so be prepared to go with the flow and change your title insurance policy on demand. How Do I Shop For Title Insurance? Shopping for your own title insurance is allowed by law, but not considered a pleasant task or one that is easy to secure. The usual way to get your title insurance is to go with your real estate professional's choice. They have carefully screened the policies and services of their preferred title companies and extracted the best title professionals for their clients. After reviewing a number of title insurance poli- cies, you will understand that there are few varia- tions on the issues that really count. Rates and ser- vices are a close call between different title insurance companies, so you want to go with an agency that has a good reputation in your community. Contracts, of any kind, are tedious and complicated fine printed materials, and this is one branch of the home buying game where your local real estate office can go to bat for you. They should not make a com- mission or receive a kick back for the connection to a quality title insur- ance company. Wisdom says to take their advice and let them set up the title insur- ance contract for you. Your title insur- ance policy must be ordered imme- diately and a copy sent to your mortgage lender. The fastest and easi- est way to ensure that you are legally covered, with- out any time lapses, is to allow your real estate agent or broker to set you up. This service is free to you and can relive the stress of shopping a policy on your own. You must have title insurance to secure your prop- erty, and your local real estate person is there to serve you. Let them. Alex Mason is a former real estate agent and mortgage bro- ker living in Los Angeles.

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