What is Montrose, Colorado Title Insurance?

If you are buying a home, you will want to ensure that you are protected. Therefore, you will want to ensure that you have title insurance! However, you may be wondering how title insurance will protect you.

Do you know what the benefits of having title insurance are?

We understand just how important it is to have title insurance! That’s why, here at Glenn Steil Style Real Estate, as Montrose real estate agents, we have comprised some information to assist you with knowing what title insurance is. If you are all set to learn more, be sure to read on:

·         What is Title Insurance? If there were to be problems or defects with a title when there is a transfer of property ownership, title insurance will protect the homebuyers and mortgage lenders. So, simply put, title insurance will protect you from financial loss and related legal expenses if any unfortunate title situations should arise.

·         What Does Title Insurance Cover? There could be a number of title issues that could arise, even after public records are meticulously searched. So, it’s important to keep in mind that there are various defects that could come about months, or even years, after purchasing a home. Some of the most common examples of risks covered by title insurance are things such as improper executions of documents, mistakes in recording legal documents, forgeries and fraud, unpaid taxes and assessments, unpaid judgements and liens, and unreleased mortgages.

·         How Does Title Insurance Work? To start, a title company will perform a title search to ensure that the home you would like to purchase has a clear title. Confirming that a title is clear means that the person selling the home truly owns it, and has every right to sell it. If there were to be a defect with the title, the title company would make you aware of it. Once a clear title is confirmed, the underwriting process begins. Underwriting means that any issues will be assessed, as well as discovering any potential problems that could arise. Once assessed, a quote for a policed based on the risks discovered will then be presented. However, if a title were to have many defects, the title company may decline to offer a policy.

·         Do You Need Title Insurance? In general, most mortgage lenders will require homebuyers to purchase title insurance that protects the lender, not the buyer, which is known as lender’s title insurance. However, to protect yourself from having to be responsible for any title issues, you will be presented with the option to purchase owner’s title insurance, which is separate from the lender’s title insurance policy. So, overall, yes, you should certainly purchase title insurance, as if an issue were to turn up in the future with your title, it could be costly to correct it. 

Purchasing title insurance for your property it certainly of importance! So, we hope that this insight has provided you with some knowledge and reasonings as to why.

Are you ready to buy or sell your own home with a real estate agent in Montrose, Colorado? If so, please contact us here at Glenn Steil Style Real Estate, as we are all set to assist you!

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