Mortgage Resources
Title Insurance
NJ Title Insurance
* These are frequently asked questions. If you have any more questions please feel free to ask us.
What is title insurance?
It is an insurance that protects a buyer from losses or damage due to inaccuracy, errors or defects in the title of the property.
Why do I need title insurance?
You need a title insurance to assure you have the full ownership of your property. Certainly, when you buy a home or any type of property for that matter, you expect to have the full ownership and use it as your desire. Thus, the title insurance will protect you against any title defect occurred in the past such as forgery, non paid taxes, invalid divorces, real estate sold without a heirs permission and other matters that might surface in the future and cause you troubles. In other words, your title insurance will safeguard your real estate investment against any valid or not valid claims you might suffer.
Who will be protected?
First of all, there are two types of title insurance protection.
1- For the mortgage lender.
2- For the homeowner or real estate investor.
Most mortgage lenders will require that you purchase title insurance to protect the amount equal to the loan and it lasts until the loan is repaid. However, this protection protects only the lender and not you. In this case, you need the owner’s title insurance that will protect your real estate investment.
How do you find out if there is any defect?
In order to verify the status of title, a title company will perform a meticulous search of the public records for those documents associated with the property. Then, all documents will be examined in order to determine if there are any rights or claims that may have an impact upon the title to the property. If any defect or restrictions exists, it will be revealed to you prior to the purchase of the property. Once reported, these matters can be accepted, resolved or extinguished prior to the closing of the transaction.
What about undiscovered problems?
Yes there are undiscovered problems, common called as “hidden risks” that are not shown by the public records such as forgery, fraudulent impersonation and others. However the title insurance protects you against all these hidden risks.
How am I protected against any claims that might surface?
If any claim is made and you are insured, a title insurance company will protect you by defending your title and make all of its necessary to settle the case and maintain your full ownership of the property.
How to buy title insurance?
If you are in the process of purchasing a home or obtaining a mortgage, you will probably need to buy title insurance. We highly recommend you to set up a one-on-one meeting with a title insurance officer, so you can fully understand the whole process and proceed with your real estate investment free of any risks.
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