What is title insurance?
Title insurance is a form of indemnity insurance that protects lenders and homebuyers from financial loss sustained from defects in a title to a property. Defects are liens or claims against a property that could hinder a properties legal transfer or ownership. Commons liens include back taxes, outstanding mortgages and conflicting wills. Title insurance also protects you from flawed records, forgery and fraud such as incorrect signatures or third party ownership. Unlike traditional insurance, which protects against future events, title insurance protects against claims for past occurrences. This is the reason you must choose a trustworthy and thorough title company like NRG Abstract to clear your title and secure your ownership.
Key points about title Insurance
- Any real estate transactions must have a clear title to ensure that the property is free from liens.
- The most common claims filed against a title are back taxes, liens, and conflicting wills.
- Title insurance protects lenders and buyers from financial loss due to defects in a title to a property.
- A title insurance policy will cover numerous risks like flawed records, incorrect ownership, and falsified documents.
Enhanced Policy?
NRG Abstract Highly recommends purchasing an enhanced title policy.
Please compare for yourself with the table below. This policy offers the most comprehensive coverage and peace of mind when purchasing a home. For only 10% more cost, you are 100% covered.
| Coverage Item | Enhanced Policy | Standard Policy |
|---|---|---|
| Any defect in title existing at the time of purchase | ✓ | ✓ |
| Prior recorded mortgages, judgements & other liens | ✓ | ✓ |
| Title owned by someone other than the seller | ✓ | ✓ |
| Unmarketability of title | ✓ | ✓ |
| Right of pedestrian access to land | ✓ | ✓ |
| Building permit violations | ✓ | NO |
| Enhanced access - right of vehicular access to land | ✓ | NO |
| Subdivision coverage | ✓ | NO |
| Violation of restrictions on land | ✓ | NO |
| Coverage extends to Living Trusts upon transfer | ✓ | NO |
| Coverage for post-closing encroachment | ✓ | NO |
| Post closing forgery protection | ✓ | NO |
| Five-year inflation protection (Automatic increase) | ✓ | NO |
17 Blacksmith rd STE D3
Newtown, PA 18940
(856) 363-2370