How to Protect Your Property from Unwanted Problems
In real estate industry, an investor may face certain problems in connection to the title of their property. For example, what will an investor do if the son of a previous owner of the property claims that his father conveyed a deed while he was not mentally competent for such a deal? In the real estate industry, such things happen quite often. After all, before your purchase the property, the title may have gone through several ownership changes. No wonder, if there is a weak link at any point in this chain. When such a situation puts the current ownership of property in jeopardy, title insurance comes up as a perfect solution. 

Title Insurance Policy: What Exactly It Is?
A Title Insurance policy is quite different from other real estate insurance policies. Unlike other insurance policies, this policy covers past events. Title Insurance provides protection to the real estate investors against any title related problem that may arise for their property. Title Insurers defends the claims of the insured party and pay for any damages or legal fees that may arise out of such problems. 

Title Insurance Policy: Things to Consider
Title Insurance Policy contains a few exceptions also. For example, if you are aware of any potential problems that lead to a claim, do not forget to inform your Title Insurance Company about that because failure to do so will lead to a denial of such a claim. Title insurance does not cover claims based on information undisclosed to the Title Insurance Company. Moreover, if the problem is based on events that occur after the policy is issued to you, Title Insurance does not entertain such claims either. 

How to Get A Title Insurance Policy?
When a real estate investor plans to sell a property, he/ she take the services of a Title Company or Attorney to perform a Title search. The company or the Attorney does a thorough research of the deeds recorded in public records in order to trace the chain of the previous ownerships back around 50 years. After that, they thoroughly check if all the previously recorded mortgages or other liens have been released. Based on their research, they prepare a Title Insurance Commitment, and when the same document is issued to the investor for a certain fee, it becomes the Title Insurance Policy. 

Title Insurance Policy: Reissue Rate
Title Insurance coverage includes all the events that occurred before the date of the policy and ends on the date the title the investor finally transfers the title. The sooner you transfer the property, the less you pay for the policy. This is where the concept of reissue rate comes up. If the Title Company had issued a policy to the previous owner on the same property within the last few years, the chances of risks are very low, and therefore, the Title Insurance Company offers a reissue rate. This reissue rate is a discounted price, which can be as low as the 40% of the usual fee. 

Title Insurance Policy: Variations in Cost and Services
In different parts of the country, you will find a significant variation in the cost and the services covered by the Title Insurance Premium. In most parts, the premium covers only protection against loss, while in some other parts; it not only covers the protection but also the costs of other related services, including those for search and examination, or any other legal fee. This variation occurs mainly because different states have different regulatory regimes. 

Title Insurance Policy: Obligations
Purchasing a Title insurance policy is not obligatory. However, if you need a mortgage, it does become obligatory because in that case, the mortgage lender definitely requires such protection for an amount equal to the loan. You pay the premium and the policy protects the lender. However, the good thing is that you just need to pay an upfront single-payment for the same. 

Title Insurance Policy: How Long Is The Coverage?
The Title Insurance offers protection as long as you own the property, have an interest in the property, or have any obligation with regard to the property. The moment you sell the property, or transfer the title, the policy ends. 

Being a serious real estate investor, you have to buy or sell real estate property. Therefore, in order to protect your property from unwanted problems, Title Insurance Policy is certainly the way to go. For this, you must understand the basics of what exactly is this Title Insurance, what claims does it cover, why do you need it, and most importantly, how can you save money on Title Insurance.

 

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