| Is Title Insurance As Good As A Warranty Deed |
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| Written by Joe Maldonado |
| Saturday, 09 April 2011 09:40 |
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The problem with this question is that the items in question are two very different things. Warranty deeds are used most often for commercial properties and title insurance is usually purchased at the time a home is bought during closing. To be fair we are going to include a bit of information on each. Just so we are clear there is no comparison of title insurance and warranty deed. They are in different categories.
The problem with this question is that the items in question are two very different things. Warranty deeds are used most often for commercial properties and title insurance is usually purchased at the time a home is bought during closing. To be fair we are going to include a bit of information on each. Just so we are clear there is no comparison of title insurance and warranty deed. They are in different categories. Title insurance is generally purchased when closing for a home with a one-time payment. The county you live in will determine which party pays for the title insurance. The average cost of title insurance in the US is 663.00. Most often sellers and buyers will agree to split this cost, however the buyer pays for the lender's policy. Title insurance is used to compensate for loss from defective titles or liens that were not found initially. It is solely designed to protect the interest of both lenders and new homeowner in the future. The title insurance comes in two basic forms. They are "owner's title insurance" and " lender's title insurance". The owner's policy is a one-time payment and the policy lasts as long as you own the property. It is transferred along with the home to any heirs you designate. Along with the regular owners title insurance you can also purchase and extended coverage policy to cover things like defects in the building, property tax liens, sub-division violations and much more. These are things that aren't commonly known at the time a house is purchased and may crop up sometime in the future. The cost will run you an addition30-50% of the cost of a regular policy. Lenders title insurance is often referred to as a Loan Policy. It is required by most lenders, and is solely for their protection in case of the aforementioned problems. You pay for it up front and it is in effect until the mortgage is paid in full. Warranty deed A warranty deed is simply a guarantee from the seller that he/she owns the clear title to the property and is legally entitled to sell it. This warranty also guarantees that there are no hidden liens or other problems involving the title. The warranty is a guarantee that if the title fails to prove valid the seller will compensate the new home for all losses. There is one obvious problem here and that is if the person dies you are left with a worthless piece of paper. This last reason is why most people have title searches performed before purchasing a property and also why there is title insurance. So you can see where the differences between title insurance and warranty deeds lie. It is best that you have a title search performed and purchase title insurance that includes the extended warranty. It may cost a bit more than you bargained for but if and when trouble arises with the title you care in good fighting position. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Next, find out more about title insurance and warranty deed in the best specialized website available on such delicate topic. |
| Last Updated on Saturday, 09 April 2011 21:15 |