Is Title Insurance Optional
Is title Insurance optional? At closing on your house, if a lender is involved, you will be required by the lender to pay a one-time fee for title insurance and you will have a choice to pay an additional fee for homeowner’s title insurance. The lender wants to be protected for the loan amount and owner should want protection for the purchase price.
Purchasing a home is probably the single biggest investment you will ever make. Before closing on the house, you’ll want to know that no other individual or entity has a right, lien or claim to the property. Title insurance protects your ownership and monetary stake in your home should someone else make a claim of ownership to your property after closing.
There are two types of title Insurance: There is the lender’s title insurance policy required by your lender because the bank wants to ensure its loan is protected from title claims. There’s a second, optional policy known as the owner’s title insurance policy, which most home buyers choose to purchase as well.
For a modest, one-time title insurance premium, you will receive continuous title insurance protection in an amount equal to the purchase price of the property or its current market value. This premium typically includes your “owners” policy as well as the “lenders” policy.
For example, in Georgia title Insurance for a $200,000 house with a mortgage of $160,000, the lender’s policy and the owner’s policy combined, would total about $750.00.
One of the marked advantages of title insurance is that prior to a policy being issued, the title insurance company completes extensive research into relevant public records, maps and documents to trace ownership of the property and determine if anyone other than you has an interest in the property. Through its research, the title insurance company can usually identify any title problems that may arise and have these problems cleared-up prior to closing.
There have been some recent changes in laws concerning title Insurance. Federal law grants home buyers the right to choose their title service provider. Many home buyers don’t realize they have a choice. They just go with whatever company their real estate agent recommends. The Consumer Financial Protection Bureau has been cracking down lately on the cozy relationship some agents have with title companies.
Homebuyers find the paperwork they sign can be lengthy and realtors try their best to explain everything you are asked to sign. However, if the document has prefilled the name of the title company in the real estate contract, be wary. That will be viewed by the CPFB as a violation against a homebuyer’s ability to shop for and choose their own service providers during the home buying process.
Many state real estate commissions are adding language to their laws to discourage licensees from steering their homebuyers toward specific lenders or title companies. In Maryland, for example, they’re revoking real estate licenses and handing out jail time. The practice that is now out-lawed, is thought to restrict the homebuyer’s choices and inflate costs. You as a consumer want to know that the service providers are the best and your broker has no conflicts of interest.
The practice that is now out-lawed, is thought to restrict the homebuyer’s choices and inflate costs. You as a consumer want to know that the service providers are the best and your broker has no conflicts of interest.
At Val Buys Houses LLC, we specialize in helping homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. Just the simple honest truth about your home. We buy for cash, therefore we can help you sell it fast to resolve any situation, or give you as much time as you need.
We care about our community in Cobb county and Atlanta. At Val Buys Houses LLC we take a lot of pride in providing excellent customer service. We have come across all scenarios, we are not here to judge; only to help.
Give us a call today at 404-844-8845 and let us see if we can help YOU!