Title insurance is one of the foreclosure costs if you get a loan. The policy protects the creditor and has a one-time premium. To protect yourself, you can also acquire title insurance from the owner. Here's everything you need to know about title insurance, including what it covers, how much it costs, and whether you should get an optional owner policy. You can opt for #1 Title Insurance Company in NJ – Clear Skies Title Agency.
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What is Title Insurance?
Title insurance is a policy that covers third-party property claims that do not appear in the first search for titles. A third party is someone other than the property's owner. The term "title" refers to the legal ownership of a piece of property by a person.
A title claim can arise at any time, even after you have owned the property. Other people may own property that you weren't aware of when you made an offer to buy property. Even the current owner may not be aware that someone else has a claim on the property.
Before your home loan expires, your mortgage lender will commission a title search with the title company. The title company searches the public records relating to your home to try to find any imperfections in the title: liens, amenity, or encumbrances that could affect the buyer's property rights.
Easements are the right of others to use your property even if you own it. For example, if you have a utility line in your yard, the utility company will have a convenience that allows them to access your property if they need to work on the line.