In Auburn, Alabama, purchasing a home is a significant investment. Safeguard your property with owner’s title insurance, a wise decision to protect your ownership interest.
What is Title?
Title refers to your rights to own and use your property. A title search in the homebuying process uncovers potential issues with your property rights. The title search includes (i) searching for liens or encumbrances on the home, and (ii) making sure the seller of the house from is the true owner. Getting the all-clear from the title company prior to purchasing your new property is a critical step.
What is Title Insurance?
Title insurance is a policy that protects against financial loss stemming from problems found in a property’s title, or legal ownership. There are two basic types of title insurance: an owner’s policy and a lender’s policy. An owner’s policy protects your property rights, while a lender’s policy safeguards the lender’s financial interests. The standard owner’s title insurance policy protects you from things like unpaid property back taxes, liens, fraud, forgery, wrong signatures on documents and recording errors.
Title insurance is different than most other insurance products. Unlike car and homeowners insurance, which requires a monthly premium, to obtain title insurance, a homebuyer only needs to pay a one-time fee at closing. Another contrast is standard title insurance protects against defects that exist that the time the policy is issued in contrast to a auto insurance policy that protects against future events. Purchasing owner’s title insurance in Auburn grants you and your heirs coverage for as long as you own the home. It also covers legal fees and court costs for settling covered claims and disputes that threaten your ownership of the property. Owner’s title insurance in Auburn protects against undiscoverable defects, unknown title issues, and unforeseeable claims like forgery, fraud, and clerical errors.
An owner’s title insurance policy with extended coverage offers even more protection, protecting against issues such as future fraud or forgery of a deed, building permit violations, zoning law violations, certain types of structural damage and inaccurate surveying.
Ask the closing attorneys at Muncie & Mattson, P.C. about how title insurance can protect your significant investment in your property.