Owner's Title Insurance

A house is a dream of every man and most people buy or make a house only once in their life time. Same is with buying a land. A few buy land as part of their investment plan while a few towards addition to their wealth. In any case ownership of house or land is very important. But in today’s world one cannot make sure that the title possessed on purchase of a house or land will not become a matter of dispute. There is always a probability that the land purchased by you or house purchased by you have some other legitimate owners whom you were not aware of while purchasing the land or house. It is at this instance that the owner’s title insurance gains importance.

Importance of Insurance

A person might come to you claiming that the ownership possessed by you is not legitimate or that he is having title or possession of the same property you have purchased on genuine belief. You might have verified all the public documents before buying the property and found no others to have claim on it. But as property is something that passes to generations over time there is chance that such a claim is genuine. Or it might also occur that it was only after paying whole money and completing the purchase that you came to know that there is some claim against the property like lien or taxes or judgments or unpaid contractor bills.

Such an issue can arise at any time even after few years of purchase of property. It is under such circumstances that the owner’s title insurance comes to your help. With an owner’s title insurance all such issues can be solved by you without losses. Usually most of the lenders funds only for those properties with a owner’s title insurance only and this is the reason behind such a decision.

How the owner does’s Title Insurance Work?

On application for owner’s title insurance a professional examiner during title search will check all the public records available on the policy either online or in person. Along with previous owners all the factors necessary for transferring the ownership of the property to a new owner is checked by examiner. Undisclosed leases, liens, restrictive covenants etc affecting the property is closely examines on applying for owner’s title insurance. On finding an issue the company will fix the problem and make the property marketable. On completing this owner’s title insurance policy will be issued by underwriters which will defend the title of policy holder in court in case someone challenges it.

The owner’s title insurance policy is attached to the property and a single owner’s title insurance policy will be enough as long as the property is in your possession. Payment for owner’s title insurance varies from state to state and region to region and hence can be negotiated between buyer and insurer.

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