In the real estate industry, all transactions are scrutinized for accuracy and legitimacy, with title companies ensuring that the buyer and seller both have a clear and legitimate property title. However, when trying to buy or sell a home in New Jersey, you might be surprised to learn that there are different types of title insurance!
In this article, we're going to introduce what each one is and why they're important. You can also compare title estimates through various online sources.
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What is Title Insurance?
Title insurance is a type of insurance that protects against financial losses from defects in the title to a property. The policy is issued by a title insurance company, and it names the insured as the owner of the property. The policy also covers the lender in the event of a foreclosure. Title insurance is required by lenders when they issue a loan for the purchase of a property.
When you purchase a home, you want to be sure that the property is yours and no one else can lay claim to it. This is where title insurance comes in. Title insurance protects you from any legal claims that may arise from someone else trying to assert ownership of your home.
It also covers you in the event that there are any errors or omissions in the public records regarding your home. Title insurance is an important part of the home-buying process and something you should be familiar with before making a purchase.