Real Estate 101 - The Nitty Gritty on Title Insurance

Home buyers often inquire about title insurance, what it is, and whether they should purchase it. Lenders title insurance is required with most mortgages, however, an owner's policy is usually optional. Home buyers must consider the benefits and make their own decision based on the fees and coverages. In this blog is title insurance information for Charlotte, NC closings.

Why Title Insurance is Necessary Even With a Title Search

Prior to settlement, a title search is always done by a closing attorney. This confirms that no other party has a right to the real estate (based on records on file) and that the title is clear to be given to another entity. The title search is not all inclusive and does not always detect defects in the title. Title insurance will cover many previously undetected title problems and the expenses associated with protecting your rights to a property.

Title Insurance Costs

Title insurance is a one-time fee due at closing that will stay valid for the years that you own the home. You can purchase it at other times, but it is typically less costly when purchased at closing. The charge is calculated using the loan amount.

Title Insurance Information For Charlotte, NC Closings and Coverage

Title insurance common coverages include...

• Fraud in connection with the completion of paperwork.
• Pressure on a grantor or executor (of a will).
• Impersonation by those claiming to be owners of a home.
• Erroneous marital status of a grantor.
• Mental incompetence of sellers.
• Transfer by a under-aged person.
• Failure to deliver deeds.
• Unresolved issues not reflected in the records.
• Inconsistent indexing at Registry of Deeds.
• Typographical blunders in recording legal documentation.
• Delivery of deeds proceeding the passing of a grantor.
• Deeds completed under unauthorized powers of attorney. 

Some policies also cover...

• Undisclosed heirs.
• Issues with wills.
• Incorrect interpretation of trusts.
• Additional heirs atter the date of a will.
• Incorrect property surveys.
• Inaccurate property descriptions.
• Issues caused by similar names.

The above information is merely an overview. Consult a local attorney for specific title insurance information for Charlotte, NC closings and pricing, as they typically vary based on the provider. This article should not be construed as legal information and may change without notice.