First time buyers often inquire about title insurance, what it is, and whether they should buy it. Lenders title insurance is required with most mortgages, however, owners title insurance is typically optional. Buyers should consider the facts and decide for themselves on whether the expense is worthwhile given the costs and coverage. Below are MA title insurance facts.
Difference Between a Title Search and Title Insurance
Before closing, a title search is normally performed by a closing attorney. This identifies that no other entity has a right to the property (based on available records) and that the title is able to be transferred to the buyer of the property. The title search is not fool proof and may not catch defects in the title. Title insurance will protect you against previously unknown title issues and the legal fees associated with defending your rights to home.
Title Insurance Coverage
Title insurance is a single charge at closing that will remain valid for the entire time that you retain ownership of the property. You can buy it after closing, but it is normally less costly when purchased at closing. The cost is based on the amount of the loan.
MA Title Insurance Facts and Items Covered
Title insurance common coverage includes…
- Fraud related to the execution of past title transfers.
- Pressure on a seller or executor (of a will).
- False impersonation by those alleging to be owners of a property.
- Erroneous marital status of a grantor.
- Mental incompetence of parties involved.
- Participation by a under-aged party.
- Non-delivery of deeds.
- Unresolved claims not noted onthe records.
- Mis-indexing at Registry of Deeds.
- Clerical glitches in recording legal documents.
- Delivery of deeds proceeding the death of a grantor.
- Transfers executed under unauthorized powers of attorney.
Some policies may include…
- undisclosed heirs.
- Wills not properly probated.
- Mistaken execution of wills.
- Birth of heirs after the date of a will.
- Incorrect land surveys.
- Inaccurate legal descriptions.
- Confusion from identical names.
The above is merely an overview. Consult a local title company for accurate MA title insurance facts and pricing, as they commonly differ based on the provider.