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Satel Law provides our real estate clients with everything they need for a successful closing. Title insurance is a form of indemnity insurance that protects lenders and homebuyers from financial loss due to defects in a title to a property. Essentially, title insurance protects against claims from past occurrences. The most common claims filed against a title policy include:
- Back taxes
- Liens from mortgage loans
- Liens from home equity lines of credit (HELOC)
- Conflicting wills
The fee paid for title insurance covers administrative fees for deep searches of title data to protect against claims for past occurrences such as:
- Ownership by another party
- Incorrect signatures on documents, as well as forgery and fraud
- Flawed records
- Restrictive covenant (terms that reduce value or enjoyment), such as unrecorded easements
- Encumbrances or judgments against property, such as outstanding lawsuits and liens
There are two types of title insurance: lender’s title insurance and owner’s title insurance. Most lenders require the borrower to purchase a lender’s title insurance policy to protect the lender in the event the seller was not legally able to transfer the title of ownership rights. While a lender’s title insurance policy protects the lender against loss, an issued policy signifies the completion of a title search and the title insurer’s confidence and reliance upon that title search, offering some assurance to the buyer. The owner’s title insurance policy provides protection to the buyer directly.
Choose Satel Law to act as your closing agent and we will initiate the title insurance process when the property purchase agreement is finalized.