Home buyers often inquire about title insurance, what it is, and whether they should buy it. Lenders title insurance is required with most mortgages, however, owners title insurance is usually optional. Buyers should evaluate the benefits and decide for themselves on whether the expense is worthwhile given the costs and coverage. The following are Newburyport title insurance facts.
Title Searches Are Not Perfect
Before closing, a title search is always completed by a title company. This confirms that no other party has a right to the home (based on available records) and that the title is available to be transferred to the buyer of the property. The title search is not guaranteed and may not catch hidden risks in the title. Title insurance will protect you against un-caught title problems and the costs associated with defending your rights to property.
Title Insurance Costs
Title insurance is a one-time charge at closing that will remain valid for the entire time that you remain owner of the home. You can buy it after closing, but it is normally less costly when offered at closing. The cost is based on the amount of the mortgage.
Newburyport Title Insurance Facts and Items Covered
Title insurance general coverage includes…
- Fraud related to the execution of documents.
- Pressure on a seller or executor (of a will).
- Impersonation by those alleging to be owners of a property.
- Erroneous marital status of a grantor.
- Mental Incapacity of sellers.
- Conveyance of a under-aged person.
- Non-delivery of essential paperwork.
- Unsatisfied claims not shown inthe records.
- Mis-indexing at Registry of Deeds.
- Clerical mistakes in recording legal documentation.
- Delivery of deeds proceeding the death of a grantor.
- Deeds executed under incorrect powers of attorney.
Some policies additionally include…
- missing heirs.
- Wills not properly probated.
- Incorrect interpretation of trusts.
- Birth of heirs subsequent to the date of a will.
- Incorrect land surveys.
- Inaccurate legal descriptions.
- Confusion due to identical names.
The above is only an introduction. Consult a local title company for specific Newburyport title insurance facts and pricing, as they typically differ based on the provider.