According to the American Land Title Association, the title services companies find and fix the problems with the title in twenty five percent of transactions. It is usually without even knowledge of the lender or the borrower. In addition, each year the title companies pay millions of dollars as claims. Title insurance providers are the significant value to the homeowners and the lenders.
The standardized forms of title insurance exist for lenders and owners. The policies for lenders are with mortgages registered on title, including refinanced mortgage and new mortgages. The policies for owners are including currently owner property and newly purchased property.
The residential title insurance policies typically insure rural properties, leased properties, cooperatives, vacant land, rental units, cottages, condominiums and houses. The commercial title insurance policies can insure leased commercial properties, vacant commercial land, warehouses, rental units, apartment buildings, shopping centers, industrial buildings, and office buildings.
The policies and the coverages vary from state to state, company to company and the policy to policy.
The standardized forms of title insurance exist for lenders and owners. The policies for lenders are with mortgages registered on title, including refinanced mortgage and new mortgages. The policies for owners are including currently owner property and newly purchased property.
- Owner's policy: The owner's policy assures to the purchasers. It assures the property that the purchaser bought is free from all encumbrances, liens and defects except the exceptions listed in the policy or those are excluded from the scope of policy's coverage. When the title is unmarketable, this policy also covers the suffered damages and losses. If there is no right of access to the land, owner's policy covers the loss. These are only the basic coverages. The expanded residential owner's policies cover additional items of losses. The purchase price paid for the property is typically the limit of liability of an owner's policy. The coverages can also be deleted or added with an endorsement as with other types of insurance policies. To cover a variety of common issues, there are many kinds of standard endorsements available. The premium for a policy may be paid by buyer or seller, it is depends on the agreement between them.
- Lender's policy: The lender's policy sometimes called as loan policy. The lender's title insurance policy is for the exclusive benefit of the mortgage lender. This type of insurance policies provides property protection, enforceability and validity of the mortgage.
- Construction loan policy: In some states, for construction loans there are separate policies are exist. The title insurance policy for construction loans require date down endorsement. It recognizes the insured amount for the property is increased due to the funds vested to the property by construction.
The residential title insurance policies typically insure rural properties, leased properties, cooperatives, vacant land, rental units, cottages, condominiums and houses. The commercial title insurance policies can insure leased commercial properties, vacant commercial land, warehouses, rental units, apartment buildings, shopping centers, industrial buildings, and office buildings.
The policies and the coverages vary from state to state, company to company and the policy to policy.
