Often wonder what that number in your closing cost column is paying for? Of all parties involved in the purchase and sale of a Jacksonville fl real estate transaction, many people feel that the title companies are the ones walking away with most of the cash. After all, they do own the biggest, most plush buildings besides the corporate banks! While no one enjoys paying title insurance costs, no one ever gets out of it either, unless you’re paying for a new property in cash. Even then, this is one insurance that isn’t wise avoiding. With closing costs being a huge expense, along with money signed away in a matter of minutes, you can rest assured this is what you get with your hard earned cash:
1. Title insurance expense is not a recurring or renewable cost and is normally based on the price of the home purchase price. Once you pay for it, you’re done with any future payments, although a quick sale to your home won’t get you a refund, and it is non-transferable.
2. It protects unknown liens against your home. Any uncovered or fraudulent claims again your ownership become the problem of the writing title company who issued policy, leaving you free from mistakes or technicalities made in earlier sales. Inaccurate property descriptions generally fall back to the title insurance footing the bill for any suits or claims.
3. There is usually a separate insurance policy issued for the buyers, and the lender will usually require a lender policy. The lender's policy will protect the lender for any defects in the title up to the amount of their loan, and the buyer's policy will protect them against any flaws in the title.
4. In case of a re-finance, discounts on premiums are usually provided if the home has been purchased within a few years, and thus, there is less work required by the title company to check and clear title. You must usually take the reigns on getting your discount, providing your mortgage lender with your original policy.
Any questions regarding understanding title insurance beyond the basics covered here are easily answered by your local title representatives or Jacksonville fl real estate agent. With title insurance being something many people know little about, no question becomes too small.