Uncategorized March 23, 2015

Benefits of title insurance

Title insurance is one of those things that we just seem to take for granted as a necessary element to buy or sell a house. In fact, it is required by lenders so you usually won't have a choice whether to purchase it or not. The list below is from my friends at Pacific Northwest Title for those of you who wonder why title insurance is important.

Benefits of Title Insurance

Pacific Northwest Title examines the history of the property and issues a report which reflects the current status of the title. A title search can disclose:

  • Who owns the property
  • The correct legal description of the property
  • Any taxes or assessments
  • Voluntary liens (such as contracts, mortgages, and deeds of trust)
  • Involuntary liens (such as judgments and federal tax liens)
  • Easements, agreements, covenants and restrictions
  • With the resources available in our title plant, we have access to all documents recorded which affect real property in Kitsap County. We also maintain an index of information gathered from Washington State Superior and Federal Courts, and other governmental agencies that would reveal:
    • Bankruptcies
    • Divorces
    • Change of name
    • Lawsuits or judgments
    • Probates/guardianships

The buyer, seller, and lender can proceed with the closing of a transaction after clearing any defects in the title uncovered by the title search. Pacific Northwest Title will then issue a policy showing the condition of the title at the time of closing. This includes the change in ownership, and any new monetary encumbrances affecting the property.

Your owner's title insurance policy protects you or your heirs for as long as you own your property. Your policy should be for the full purchase price of the property. The Lender's policy protects the lender's investment in the property. This policy is issued for the amount financed and decreases as the mortgage is paid off. Traditionally the seller pays for the owner's policy and the purchaser pays for the lender's policy. This one-time premium provides years of security! By requesting the owner's and the lender's policies at the same time, you will enjoy substantial savings on the premium.  In the event of a problem, Pacific Northwest Title Company will, at its own expense, defend the title and pay losses up to the policy amount to satisfy any valid claim.