Without title insurance, you have no protection! Title insurance does not guarantee that title defects do not exist or will never occur, but it ensures protection from certain claims against title that arise from unrevealed conditions during an attorney’s initial public records search.
There are two types of title coverage: lender’s and owner’s title coverage:
- Lender’s Title Coverage:
- Due to the risk of undiscovered conditions after a public records search, a Lender’s policy is required to protect the amount of loaned to purchase the property.
- Owner’s Title Coverage:
- Owner’s title insurance is a one-time fee paid at closing
- Provides more protection to the buyer by including protection of the total purchase price.
- Offers security in ownership
- Assists in a quick transfer of the property
- Guarantees payment of legal costs to defend your title and payment of all covered, successful claims up to the face amount of the policy.
- Although not required, an Owner’s policy is highly suggested because lenders are often given coverage that owners are not. In addition, a lender’s coverage terminates when the loan is paid in full, so an owner’s policy would provide coverage throughout the duration of ownership.
- North Carolina property owners benefit from a “Simultaneous Issue Rate,” which applies when a lender’s policy is requested at the same time an owner’s policy is ordered. This rate is included in the owner’s policy premium at no additional charge.
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