When you buy a house in New York, you’re buying not just any old property. You’re buying a home where you can raise your children, host dinner parties and make memories. But while all that may be true, there’s another key aspect of buying a house: You’re also buying the title to the property. And that’s where title insurance New York comes into play, and why you need to hire an agency like MacGregor Abstract.
What is title insurance?
Title insurance is a form of insurance that protects lenders and buyers against errors in the property’s title. It also protects against someone else claiming ownership of the property, even after you’ve purchased it.
Why do I need title insurance?
There are two kinds of title insurance: owner’s coverage and lender’s coverage. Owner’s coverage protects new homeowners against issues that arise with their property titles after they’ve purchased their homes. Lender’s coverage protects mortgage lenders from these same issues.
Title insurance is a form of indemnity insurance that protects the lender and/or owner (owner’s title insurance) against loss arising out of defects in, or challenges to, the title to the property. It is usually issued as a condition of a loan or mortgage.
There are two types of title insurance:
1.Lender’s Policy. A Lender’s Policy is for the benefit of the mortgage lender and protects their interest in your home, up to the amount of your mortgage. You are not required to purchase a Lender’s Policy, but most lenders require it as part of your mortgage transaction.
2.Owner’s Policy. An Owner’s Policy, on the other hand, is for your benefit and protects your equity in your home up to the amount you paid for it or its appraised value at time of purchase, whichever is less. Most people opt to purchase this type of policy as well because they feel more secure knowing they are protected against any problems that may arise with their title.
Why Do I Need Title Insurance?
Title insurance provides protection against loss due to defects, liens or encumbrances on title to the property. It also provides coverage should anyone challenge the ownership of your property.
Our policies provide additional benefits, including:
Coverage for losses and legal fees associated with a covered claim.
Coverage for losses and legal fees associated with a covered claim.
Protection against claims arising from various specific matters, such as voiding certain conveyances, rights of unmarried parties (including same-sex couples), or unrecorded rights of parties with an interest in the property.
Title insurance protects the holder from financial loss resulting from defects in a title to a property. In New York, the seller pays for the title insurance policy for the buyer.
Why do you need title insurance if you are buying a house?
It’s easy to think of your home as an asset, but there can be hidden surprises lurking in its history. From unpaid bills and taxes to legal issues — not all problems with a property’s history will be obvious when you buy it, which is why you need title insurance.
There are two types of title insurance policies: owners and lenders. While the lender policy is required by most banks during the mortgage process, owner policies are optional and protect the buyer in case something isn’t right with their property title
