Title Insurance 101

Why You Need a Title Insurance Policy
Before deciding if you need to consult with a lawyer for title insurance, it is best to understand why having a title insurance policy is necessary. During the mortgage process, purchasing a lender’s title insurance is mandatory.
Yet, some homeowners choose to buy title coverage for themselves because of the compensation it provides in the case of legal costs or damages. This insurance can protect you from the following:

Unreported easements and liens on the property

Forged transfers of ownership rights

Errors during the filing or recording documents process

Any title defects existing before the beginning of the policy

If you have any of the above troubles, it is best to speak with a title insurance attorney about your rights.

There aren’t many claims paid out to the purchasers of title insurance, but most people opt to receive it anyway just in case.

Do You Need a Lawyer for a Title Insurance Policy?

Although title insurance claims are scarce, having a title insurance lawyer is never a bad idea. In fact, many homeowners want to have an attorney present with them during the closing process.

The presence of a lawyer can do a lot of good for you. For example, title insurance companies tend to tack on extra escrow and tax certificate fees among others.

You should always ask for documentation regarding these extra charges. Having your closing papers in advance can help you decide if you are getting a fair deal.

Likewise, having a lawyer there with you can ensure that you aren’t being scammed or overcharged during the home closing process.

It is important to note that an owner’s title insurance policy does not cover the following:

Defects created after the policy begins

Defects you create or have knowledge of Failure to pay your mortgage

Claims from those who may have rights on your property

Condemned land

Building and zoning ordinance violations

Disclosed restrictive covenants

When you have a title insurance lawyer, they can ensure you are within the guidelines of your policy. They can also keep necessary documents organized.

If you have questions regarding any portion of a title insurance policy, a knowledgeable lawyer can answer them for you.

Are You Purchasing a Title Insurance Policy?

If you are purchasing a title insurance policy any time soon, it is recommended to have a lawyer walk you through the process. Attorneys are not only here to help when things go awry, they can answer questions and provide a shoulder to lean on.

Before wandering through the mortgage process, hire a lawyer that understands the fundamentals of title insurance policies. Contact us today to learn more about our title insurance services.