The purpose of title insurance is to ensure the purchaser as well as the lender that no individual or government entity has any claim, lien ,or encumbrance on the property that is being purchased or refinanced. This gives both the purchaser and the mortgage lender peace of mind knowing that the investment is fully protected.
We accomplish this by searching numerous public records. After a thorough examination of all records pertaining to the property and previous owners, a title commitment is issued. Upon the completion of the settlement, any claim that may be filed as a result of undisclosed or unrecorded information is covered by that policy. We also ensure proper transfer of title/deed as well as fill all recordings.
Yes, it is mandatory if you need a mortgage, because all mortgage lenders require protection for an amount equal to the loan. As with mortgage insurance, it protects the lender but you pay the premium, which is a single payment made upfront.
Unlike most insurances, title insurance only protects against losses from claims that arise prior to the date of the policy. Coverage ends on the day the policy is issued and extends backward in time for an indefinite period.
You’ll find that many lenders, real estate companies, or other parties involved in the transaction actually own part of the title company. The lenders are able to set certain standards for the insurer, but there are federal laws that prevent you from being required to purchase title insurance from any particular company. Shop around and you will find that Lloyds and Handson’s rates are competitive. Combined with our high level of service, we offer peace of mind at a reasonable rate.
