Residential Real Estate Closings: Why Pay for Title Insurance?
Would you buy real estate at the beach and not insure from the possibility of loss due to a hurricane? NO.
Would you buy real estate and not insure yourself from the possibility of loss due to a fire? NO.
Then why would you buy real estate and not insure yourself against the possibility of loss arising from hazards and defects existing in the title to the real estate?
First, there are two types of title insurance you should considering when buying residential real estate. An Owner’s Policy is for the purchaser’s protection and is normally issued in the amount of the real estate purchase. The policy lasts as long as the insured – or his/her heirs – have an interest in the real estate. On the other hand, a Loan Policy is for the lender’s protection and is normally issued in the amount of the mortgage loan to insure the lender’s priority position on the lien. It will expire when the lien is paid off.
Title insurance helps eliminate risk before the purchase and closing of real estate and from hidden title hazards after completion of a real estate closing. Elimination of risk before purchasing real estate begins with a search of public land records for matters, which might affect the title to real estate. Any objections or concerns to title such as deeds, wills and trusts that contain improper vestings and incorrect names, outstanding mortgages, judgments, tax liens and easements can and should be cleared before the purchase and the real estate closing. Elimination of risk after purchase protects the purchaser from any hidden title hazards that may emerge after the real estate closing and cause financial loss. These can include a forged deed that transfers no title to real estate, previously undisclosed heirs with claims against the real estate, instruments executed under expired or fabricated power of attorney and mistakes in public records.
Ultimately, the one-time up front payment for title insurance helps the purchaser rest assured that they may use and enjoy the real estate without the possibility of financial loss from title claims asserted by others.
If you have questions about real estate closings or buying real estate in Greenville, South Carolina, or in the surrounding counties of Spartanburg, Anderson, Pickens or Oconee, please give us a call. If you are simply looking for a real estate lawyer or real estate attorney to assist you with your next real estate closing, call us today.
Angela Elliot Frazier is a Family Law Attorney who practices in Greenville, SC. She graduated from the University of South Carolina School of Law, and has been practicing law for 14 years now. Angela Frazier believes in helping you through one of the most stressful times of your life. Learn more about her experience by clicking here.