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What is Title Insurance And Who Pays For It

Title Insurance Defined

“An insurance policy that protects the homeowner or the lender against possible loss or damage arising through defects in title to real estate.”

Title Search Steps

Factors That Can Affect a Home’s Title

Deeds establish a chain of title, but sometimes those chains contain errors or are broken. In addition, title searchers also look for reconveyances (proof that the encumbrances are paid off), and they look for easements, rights-of-way, Covenants, Conditions, and Restrictions, and other elements affecting title to the property. Here are some additional items searched to piece title together:

Three Types of Title Insurance Coverage

Homeowners and consumers can choose among a variety of options, but the top three choices are Owners, Lender’s, and Extended Coverage.

Basic Owner’s Title Policy Coverage

Basic Lender’s Title Policy Coverage

Extended Owner’s Coverage

Who Pays For Title Insurance In San Diego

How Long do Title Policies Last

Title insurance last for as long as you own the home. If you are considering selling your home within a couple years of your initial purchase, ask your title company about purchasing “Binder” coverage. Some title companies may sell you what is referred to as a Binder policy for a fee 10% more. A Binder policy generally last for two years, and you can essentially re-use the Owner’s Policy you obtained for your purchase for the buyer of your home for either a small fee or no fee. You are required to use the same Title Company that issued your original Owners Policy.

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