Title insurance provides coverage against loss or damage to many title risks that relate to real property. It also covers if someone else claims ownership of the insured property or if the priority or enforceability of a lender’s mortgage on the title is challenged.
Title insurance covers title defects that are known to exist at closing but not known by the insured. It covers losses due to many types of title fraud.
Because of its extensive coverage, title insurance is popular because it saves time and money on closing real estate transactions. Title insurance is available to homebuyers, existing homeowners, commercial lenders, and property buyers. You can also know more about the title insurance in NJ from http://www.clearskiestitle.com/.
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Title insurance can be purchased for residential or commercial properties. It must also meet the underwriting criteria set by the title insurance company. You can get policies for the lender only, or both the buyer and lender.
A one-time premium is charged for title insurance. The purchase price for an owner policy and the registered mortgage amount for a lender policy determine the premium. Owners' policy coverage is valid as long the owner has an interest in the property.
Lenders have to be insured for the same period. Owner policy coverage can be extended even if the original insured has lost their interest. This includes situations in which there is a transfer or a deed of title in favor of a spouse or child receiving nominal consideration. Lender policies cover assignees of the insured loan.