Is Title Insurance As Good As A Warranty Deed

There seems to be some confusion as to the nature of title insurance and warranty deeds. The two or not similar at all. In fact they serve two entirely different purposes. Title insurance and warranty deeds are both about buying a new home but that is where the similarities end. Below you will find a full description of each and their purpose. this should clear up any confusion you might have.

Title insurance can be purchased at the close of escrow on a new home. The payment for this insurance is made only once and the coverage last as long as you are in the home. the individual counties decide which party, the buyer or the seller, will pay for the title insurance. It is not unheard of that the buyer and seller will agree to divide the cost equally between them.

Title insurance can have an additional extended warranty added onto it for an extra fee. The average cost for title insurance is between 600-700.00 and to get he extension will cost you up to 50% of this price. The purpose of the title insurance is to protect a new homeowner from problems that were not readily visible at the time of purchase. Although most often title searches are ran on the Internet, there are times when things will crop up that were not listed there.

Title insurance has two forms, one is for the new owner and the other is for the lender. The owner’s policy is transferred along with the property rights to any heirs in the future. The lenders title insurance protects them from may liability that may happen with the title in the future. Since they loaned you the money to buy the house any title dispute will necessarily impact them. the lenders policy has no protective provisions for the new homeowner so its best to get the owners policy. The lender’s policy is required before you can get the loan.

Warranty Deed

The warranty deed is a document forged by the seller of a property attesting and affirming their right to sell the property and that the title is free and clear. This warrant y gives the buyer the legal right to actively seek compensation for any hardships due to title problems. This sounds great in theory but if the seller issues a special warranty deed it only covers the time the seller had the property anything before that is not covered. It is best to have a general warranty deed for this reason.

Another problem with having a warranty deed is that if the seller dies and something comes up you have no recourse. Again this is one of the reasons title insurance was sought in the first place. When buying a property hire someone to do a complete title search and include the price of title insurance in the loan request. This is the only real guarantee that you do not lose when title issues arise.

Next, find out more about title insurance and warranty deed in the best specialized website available on such delicate topic.