HOME TITLE INSURANCE
Title insurance: You can't avoid it. If you're buying a home, your
bank is probably forcing you to buy title insurance. But just
because you have to buy it doesn't mean you can't save yourself
some money by knowing a few of the basics.
Unlike other forms of insurance that focus on possible future
events and charge an annual premium, the American Land Title
Association (ALTA) explains that title insurance is purchased for a
one-time payment and is a safeguard against loss arising from
hazards and defects already existing in the title.
Title insurance protects the bank against mistakes made in a title
search. A title searcher, who should be licensed and bonded, checks
on details such as making sure there isn't a lien against the
title, or that the person you're buying the house from really owns
it.
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