TITLE INSURANCE – SOOTHING CUSTOMERS MORTGAGE ANXIETIES
Introduction
The Pennsylvania Supreme court order in the “Watson Versus Muirhead” case is where the Title Insurance came into focus. As the story goes, an outstanding prior lien missed by a covenanter lead to the loss of the case by Muirhead in the year 1868. He lost his property when it was held by the honorable court that the covenanter is at no fault for acting in good faith and cannot be held liable for opinions that were erroneous. Thereafter legislation had been passed in Pennsylvania, in 1874 which allowed for the issuance of title insurance. Choosing covenants were then considered a matter of repute. The first title insurance company was formed in the year 1876. However, it was …show more content…
is backed by title insurance thereby protecting the home buyer and lender against innumerable and unforeseen risks in the nature of unknown recorded liens, defects in public records, forgeries, improperly delivered deeds, etc.
Title insurance is a contract of indemnity that guarantees the condition of real property. Simply put, for a home when you take a title insurance policy, the company giving you the policy guarantees that the property being sold has a clear title and has no liens against it. The company which offers you a title insurance policy is expected to do a rigorous search to find out if there are any liens against the said property and will subsequently pack it up into a “title commitment”.
There are numerous examples to cite, like a home owner has defaulted payment of HOA dues for which HOA can put an assessment lien on the property. Developer or Builder of the newly constructed home can stamp or clamp a material man’s lien or that of a surveyor or mechanic if there services do not get honored. One of the most common instances of injunction, spool out from many people having same or similar names which has to be zeroed down to our title owner in question.
Mortgages & Myths – Trusted & …show more content…
The insurance is really there in case the title search missed something.
And, in many places, it is the title company that presides over the closing process, preparing all the paperwork and directing the exchange of checks. It can be a mystifying ritual for the buyer, and the real estate agent is typically little more than a silent bystander at this stage of the game.
Because most buyers are unfamiliar with the title insurance process, it’s common to select a firm recommended by the real estate agent or lender, who may propose a firm they prefer to deal with, even if it’s not the cheapest. But the buyer has the right to choose the title company, and can shop around for the best deal.
Some states set the price for the title insurance but may allow title insurers to add incidental fees, which can vary from firm to firm. Even if you find little variation in price, it can make sense to choose a title company that's nearby, since many home purchases involve a frenzy of paperwork in the days leading up to the closing.
Introduction
The Pennsylvania Supreme court order in the “Watson Versus Muirhead” case is where the Title Insurance came into focus. As the story goes, an outstanding prior lien missed by a covenanter lead to the loss of the case by Muirhead in the year 1868. He lost his property when it was held by the honorable court that the covenanter is at no fault for acting in good faith and cannot be held liable for opinions that were erroneous. Thereafter legislation had been passed in Pennsylvania, in 1874 which allowed for the issuance of title insurance. Choosing covenants were then considered a matter of repute. The first title insurance company was formed in the year 1876. However, it was …show more content…
is backed by title insurance thereby protecting the home buyer and lender against innumerable and unforeseen risks in the nature of unknown recorded liens, defects in public records, forgeries, improperly delivered deeds, etc.
Title insurance is a contract of indemnity that guarantees the condition of real property. Simply put, for a home when you take a title insurance policy, the company giving you the policy guarantees that the property being sold has a clear title and has no liens against it. The company which offers you a title insurance policy is expected to do a rigorous search to find out if there are any liens against the said property and will subsequently pack it up into a “title commitment”.
There are numerous examples to cite, like a home owner has defaulted payment of HOA dues for which HOA can put an assessment lien on the property. Developer or Builder of the newly constructed home can stamp or clamp a material man’s lien or that of a surveyor or mechanic if there services do not get honored. One of the most common instances of injunction, spool out from many people having same or similar names which has to be zeroed down to our title owner in question.
Mortgages & Myths – Trusted & …show more content…
The insurance is really there in case the title search missed something.
And, in many places, it is the title company that presides over the closing process, preparing all the paperwork and directing the exchange of checks. It can be a mystifying ritual for the buyer, and the real estate agent is typically little more than a silent bystander at this stage of the game.
Because most buyers are unfamiliar with the title insurance process, it’s common to select a firm recommended by the real estate agent or lender, who may propose a firm they prefer to deal with, even if it’s not the cheapest. But the buyer has the right to choose the title company, and can shop around for the best deal.
Some states set the price for the title insurance but may allow title insurers to add incidental fees, which can vary from firm to firm. Even if you find little variation in price, it can make sense to choose a title company that's nearby, since many home purchases involve a frenzy of paperwork in the days leading up to the closing.