JEANNE REARDON - Attorney at Law
RSS

Delivered by FeedBurner


Recent Posts

What does the "on or about" closing date in my contract to purchase a home mean?
Real Estate Contract Mortgage Contingency Clause
Why a Home Buyer Needs Title Insurance
Joint Ownership of Real Property in New York
Home Mortgage Refinance

Categories

Capital Gains Tax
Closing Costs
Condos and Coops
Deeds
Foreclosure
Home Buying and Selling
Home Mortgage Refinance
Homeowner's Insurance
Investors
Loan Modification
Making Home Affordable
Real Estate
Real Estate Closing Costs
Refinance
Short Sales
Title Insurance
TRID
Types of Ownership of Real Property
Welcome
Zoning

Archives

October 2018
September 2018
June 2018
May 2018
February 2018
November 2017
April 2017
February 2017
January 2017
May 2016
April 2014
February 2014
January 2014
January 2013
August 2012
June 2012
March 2012
January 2012
December 2011
November 2011
October 2011
September 2011
July 2011

powered by

Real Estate Law Blog

Why a Home Buyer Needs Title Insurance

Title insurance is crucial for a home buyer because it protects you and the lender from the possibility that your seller doesn't -- or previous sellers didn't -- have free and clear ownership of the house and property and, therefore, can't rightfully transfer full ownership to you. Problems with the title can limit your use and enjoyment of the property, as well as cause you financial loss.  This is why you need title insurance.  

Your real estate attorney will arrange the process of getting you title insurance soon after your Contract of Sale is signed.



What Could Happen If You Don't Get Title Insurance?

Title insurance protects against the following common hidden risks just to name a few:

  • Errors or omissions in deeds
  • Mistakes in examining records
  • Forgery
  • Undisclosed or missing heirs
  • False impersonation of the true owner of the property
  • Instruments executed under invalid or expired power of attorney
  • Mistakes in recording legal documents
  • Misinterpretations of wills Deeds by persons of unsound mind
  • Deeds by minors
  • Deeds by persons supposedly single, but in fact married
  • Fraud
  • Liens for unpaid estate, inheritance, income or gift taxes


Title Insurance: Lender's Policies and Buyer's Policies

Title insurance is typically a combination of two policies: a lender's policy and a borrower's policy. Your lender -- assuming you're taking out a mortgage, will require that you buy a lender's policy (also called a "mortgagee's policy") to pay for its legal defense costs and reimburse any mortgage payments you can't make because you've lost the house to someone else's claim on it.

The lender may also require you to buy an "owner's policy," covering your own legal fees and other losses, as yet another step toward protecting the lender's collateral. Your title insurance policy remains in effect as long as you, or your heirs, retain an interest in the property.  Title insurance will give you the peace of mind in knowing that the investment that you have made in your home is a safe one.

The Law Office of Jeanne M. Reardon assists New York property owners with title insurance matters. To speak with an experienced New Yorkreal estate attorney, call us at (516) 314-8433 or e-mail us.