Title insurance provides coverage for risks of existing shares on the date of the policy. The date of the policy is the act of registration date i.e. owner policy and the date of registration of the mortgage i.e. lender policy.
The following is a list of items that title insurance can cover for homeowners. You can visit https://www.clearskiestitle.com/estimate/ to know more about title insurance policy.
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Title insurance provides protection against loss or damage by the owners and lenders in many situations as fraud. The title fraud is something that mortgage experts should also be aware of.
Title fraud involves illegal use of the title of a property to obtain mortgage funds. Fraud can be committed by a number of methods, including a fraudulent property transfer with forged documents or owner of identity theft to obtain financing.
For residential regulations, homeowners are protected from losses resulting from fraud, forgery, coercion, incapacity or impersonation, and borrowers are protected from losses resulting from the violation after the date of any agreed transfer, release, discharge, postponement or mortgage change policy.
In addition, the provision of cover in the policy owner with regard to someone else owning an interest in the title may apply in circumstances where an innocent purchaser buys a property that was sold fraudulently.
For lenders, the provision on the invalidity of the mortgage on the title can also apply. As the mortgage experts, it is your responsibility to make sure your client is aware of title insurance and what it can provide for protection, even if the lender does not require it.