One fee you may pay when you buy a home is for an owner’s title insurance policy and for a lender’s title insurance policy. Title insurance for a lender assures the lender that you own the home free and clear, with no liens on it. When you buy title insurance a title company will run a title search to check public records for information on the home. When you get an owner’s title insurance policy, the title insurance company protects you from title issues that your real estate property might have had prior to your ownership. It may be fraud, it may be a lien that is not discovered, or another title issue. In these instance, the title company’s title insurance policy will protect you from undisclosed issues. Who pays for the title insurance varies by state – sometimes it’s the buyer, sometimes the seller. Learn the ins and outs of title insurance here.
A divorced woman wants to make sure the property she's buying from her ex-husband does not have any outstanding liens. Liens may include mortgage loans and home equity lines of credit or HELOCs. An attorney can also help sort out whether there are any outstanding liens and ensure that the title is free and clear of liens.
A father changed the ownership of his property from joint tenants with right of survivorship to tenancy in common. The father later signed a quit claim deed giving his interest in the property to his daughter. What does tenancy in common mean for property ownership? Is the property ownership divided equally so everyone gets the same amount of land? State laws and how the father changed the joint tenancy will determine the answer to the property ownership.
Today on the Clark Howard Show, Ilyce Glink filled in. She discussed the drop in mortgage interest rates and whether now is a good time to refinance. Ilyce also talked about the stock market decline and the disappointing housing numbers causing the sell-off on Wall Street. She took calls about title insurance, streamline refinancing of a loan, identity theft, foreclosures, debt collectors, medical debts, fake check scams, inherited real estate, credit card debts, and creditkarma.com. For show notes and updates through the week, check out her blog at www.thinkglink.com/blog , and sign up for her free weekly newsletter on the ThinkGlink.com home page. Check out the videos at www.expertrealestatetips.net. And be sure to subscribe to her YouTube channel.
Title insurance protects you and your property. A title insurance company runs a title search before issuing a policy. A title search means looking at public records relating to your property and tracing the chain of ownership. What documents are included in a title search?
When you buy a property in a subdivision, your property likely has easements around it. In some cases these easements are for utilities. An easement allows a second party, such as a utility company or neighbor, access to property. Easements are legally documented and it's helpful to consult a real estate attorney to understand them.
What is an easement? An easement allows a second party, such as a neighbor or utility company, access to your property. An easement is limited to a small part of a property usually and it stipulates the property's condition after the second party accesses the property. You can find out your property's easements by looking at the survey completed with your title insurance. Learn about easements here.
What is a title commitment? The title commitment is the promise the title company makes to provide title insurance. The title insurance protects you if anyone makes a claim against your property. The title commitment is used in conjunction with a survey that illustrates the property.