Tag Archives: title insurance policy

Q & A with America’s Real Estate Professor: Title insurance on refinance

4 Dec

from Norwalk Reflector Dec 2, 2013

Title Insurance on Refinance


Q. I just received my closing statements from my refinance and it looks like I had to purchase another title insurance policy. I’m pretty sure I bought one when I purchased the property, why do I have to buy another? Michael L.


A. Title insurance protects you, the buyer, for issues that could affect the title; that occurred before you purchased the property. These could be items like liens, ownership disputes and unpaid taxes. When you acquired the property, a policy was purchased protecting you. Many times the seller pays for this policy but it’s negotiable; and you bought a policy for the lender.


Yes, it seems foolish to purchase two policies covering the same thing, but you have no choice because your bank demands its own policy protection. Also, the policy you purchase for the bank is generally only for the mortgage amount, whereas the policy from the seller at closing is generally for the entire purchase price.


Now that you are refinancing, you get to buy a new policy for a new lender. Even if it is the same lender, you still get to buy a new policy. This new policy covers the period before you purchased the property, plus the time you’ve owned the property up until the date of refinancing, and any increased loan amount.


WSJ: Consult a Title Professional

23 Apr

Know Your Rights When Buying Real Estate


Consult a Land Title Professional and Purchase Title Insurance



As the spring home buying season begins, the American Land Title Association (ALTA) reminds consumers of the importance of title insurance when purchasing real estate and protecting their rights to property.


“For most Americans, our home is the single largest financial investment we make,” said ALTA president, Frank Pellegrini. “More importantly, it’s where we raise our families, share time with friends and live our lives. While ownership of our home may seem very straightforward, our rights to enjoy our property aren’t always as clear.”


Homeowners can purchase, for a one-time fee, an owner’s title insurance policy, which insures that consumers are protected in the case of known liens or encumbrances, such as unpaid mortgages, property taxes or child support liens.


“Title insurance professionals research the history of a property by scouring through public records to determine whether title problems exist,” said Pellegrini. “When a title professional finds an issue, they work to resolve it– typically without the consumer even knowing about it.”


ALTA, the national trade association of the land title insurance industry, encourages consumers to shop for their own title professional or title company. Homebuyers can also ask their real estate agent or lender for a recommendation.






About ALTA


The American Land Title Association, founded in 1907, is a national trade association representing nearly 4,200 title insurance companies, title agents, independent abstracters, title searchers, and attorneys. ALTA members conduct title searches, examinations, closings, and issue title insurance that protects real property owners and mortgage lenders against losses from defects in titles.



    SOURCE: American Land Title Association (ALTA) 
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