Title Insurance: What You Should Know
For many first time homebuyers, title insurance can seem like another thing to add to the list when closing on a new home – whether they understand it or not. Many times when dealing with real estate, a title insurance policy is the only thing that can assist homeowners during a time of need. That’s why our team here at Grand Strand Law Group in Myrtle Beach is here to help you understand what title insurance is, and why it’s important!
Two Types of Policies
There are two types of title insurance you can aquire: an owner’s policy and a loan policy. Both are a one-time, upfront cost due at closing – there’s no monthly premium and the policy will protect the homeowner as long as they own the property. An owner’s title insurance policy, in short, protects the homeowner against any legal claims on the property (home and land included) and is usually issued in the real estate purchase amount. It’s a homeowners’ insurance policy against any adverse claims made by prior owners or those claiming through a prior owner or errors in records.
A loan policy comes into play when financing is involved and is usually required by the Lender. This type of policy only protects the lender if a problem with the title arises – it does not protect the buyer. The policy amount decreases each year and eventually disappears as the loan is paid off.
Why It’s Important
When purchasing a home, a clean title search doesn’t always mean a clean title – hence it won’t uncover every potential mistake in the title. Sometimes there are instances you might not consider when deciding on title insurance. Even if the home your buying had only one owner or was just built – the land isn’t new! All in all, title insurance is a simple and stress-free way to protect yourself and your property against any title issues.
Need an example of when you might need it? Click here to see our examples and to learn more about how we can assist you in acquiring title insurance! Overall, our team here at Grand Strand Law Group recommends title insurance to protect one of, if not the largest investments you’ll ever make. Don’t hesitate to give us a call at 843.492.5422, or click here if you have any questions! We’re happy to help!