Buying or selling a home marks a transition in your life. Whether you are starting new, upgrading or downsizing we can help you move on to the next phase of your life. At the Law Office of Kathleen H. Georgevich, P.C. we work with all the parties involved, including the real estate agent, lender and other attorney to ensure a timely and smooth closing. We keep you fully informed during the time between signing the real estate contract and sitting down at the closing table. We have posted some helpful tips for buyers and sellers , but don’t hesitate to contact us if you have any questions or concerns.

What is Title Insurance, anyway?

In a housing transaction, there are many different forms of insurance. Title insurance protects the Owner’s interest in the property from loss or damage due to defects in the title. Title insurance is different from other forms of insurance in many different ways. First, there are no annual premiums. Title insurance is a one-time cost. Second, it is proactive where most insurance is reactive. A title policy is a promise that no-one else has an interest in the property. The buyer who has title insurance can rest assured that no-one will show up next week and assert a superior claim to their new house.

Sometimes, two title policies will issue, one to the Purchaser (called an Owners Policy) and one to the Lender (called a Loan Policy). The Loan policy is to protect the bank which issued the mortgage, and the Owner’s policy is to protect the Buyer. The Loan Policy is usually based on the dollar amount of your loan. It only protects the lender’s interests in the property should a problem with the title arise. It does not protect the buyer. The policy amount decreases each year and eventually disappears as the loan is paid off. The Owners Policy protects the Owner and his or her heirs for as long as they keep the property.

In either case, if a covered issue with the title arises after the closing the Title company will provide legal defense and possibly monetary compensation.