Title Insurance for Your Peace of Mind
At Community Mortgage, LLC (NMLS: #224143), we answer questions about this process every day. Call us at (816) 916-7723.
The biggest investment you will make in your lifetime will likely be purchasing a home. So before you close, you need to know that nobody else has a claim to the property.
A title company ensures that your new home doesn't carry expensive encumbrances and other legal obstacles.
For a modest, one-time title insurance premium, you will receive continuous title insurance protection equal to the purchase price of the property or its current market value.
The title company searches the title history of the property. Through its research, the title insurance company can usually find any title problems that may arise and have these problems cleared-up prior to closing.
Because Real Estate Law is so complex, you need an expert to make sure that all previous transactions have been correct, so you don't end up with legal problems or a problem with the title to your property. Your owner's policy will describe the property and outline any recorded limitations on your ownership. It will also cover what the title insurance company is responsible for. Title insurance usually covers:
- Contested title — Someone, usually a previous owner or occupant, claims they still own the property or have not given up their claim. In this case, the title insurance company will defend the title at no expense to you.
- Defective title — This is a general term for a legal problem with the title that cannot be corrected and includes "contested title" above. Defects are rare, but they can be very difficult, making the property inaccessible, unable to be built, or unsaleable. Many other complicated problems define "Defective title." The title insurance policy will protect you from these errors if the title company doesn't discover them.
In the market for a new mortgage? We can help! Call us at (816) 916-7723. Ready to get started? Apply Here