Columbia (MD) Owners Title Insurance | Maryland Lenders Title Insurance
WHAT IS TITLE INSURANCE?
There are two types of title insurance. Lenders'
title insurance is required by virtually all lenders to assure them
that should a title defect arise, their investment in the subject
property is protected. Lenders require the Borrowers to pay for
lender coverage as a condition of obtaining a loan.
Owners title insurance protects the purchaser from
any title claims arising from the previous ownership. The owner is
protected from such problems as fraud, forgery and filing errors.
WHY DO I NEED TITLE
A title search is performed on each transaction. The
title records are only as good as the documents recorded. If a
previous owner perpetrated a fraud, committed a forgery or the clerk
of the land records failed to record or recorded incorrectly, the
purchaser is unprotected without owners title insurance. With the
coverage, the title insurance company incurs the expense of
determining the validity of a claim and defending against the claim.
If there is a title defect, the title insurance company pays the
claim so that the purchaser retains ownership without loss, or
compensates the owner for any and all losses incurred as a result .
The cost of the owner's title insurance premium is modest in
comparison with the potential loss from a claim. Owners title
insurance is a one-time premium.
WHAT DOES A TITLE COMPANY DO?
A title company oversees the interests of all parties, consisting
of buyers, sellers, lenders, real estate agents and coordinates the
transfer of money and property at the time of closing. Prior to
settlement the title company will research the ownership history of
the property (which is called the title examination) to determine
that the title is free of any liens or claims. At the settlement
table, the title company collects and distributes funds from the
transaction, transfers ownership of the property, and issues title
WHAT IS TITLE INSURANCE AND WHY DO I NEED
The title insurance protects you, the property owner, and the
lending institution that holds your mortgage from unforeseen claims
that may arise against your property. The policy provides protection
from financial loss and payment of legal costs associated with such
IS A TITLE EXAM SUFFICIENT WITHOUT THE NEED FOR TITLE
No. A title examination is only as good as the land records.
Should a filing error happen, if someone perpetrates a fraud, if an
estate is mishandled. The title insurance protects you, even thought
the title examination did not and could not disclose the
DO TITLE COMPANIES CHARGE DIFFERENT RATES FOR TITLE
Title Insurance rates are set by state insurance commissions and
are based on the purchase price of your property (owner's policy)
and the loan amount (lender's policy).
AM I REQUIRED TO PURCHASE TITLE INSURANCE?
Most lenders will require that you purchase a lender's title
Insurance policy. This protects their investments in your property.
You are not required to purchase an owner's policy; however, your
one-time payment will protect your property for as long as you own