First time buyers often ask about owners title insurance, what it covers, and whether they should buy it. Lenders title insurance is required with most mortgages, however, owners title insurance is typically optional. Buyers should evaluate the features and decide for themselves on whether the expense is worthwhile given the costs and benefits. Below are MA owners title insurance details.
Difference Between a Title Search and Title Insurance
Before closing, a title search is typically performed by a title company. This identifies that no other party has a lien on the home (based on records on file) and that the title is clear to be transferred to the buyer of the property. The title search is not guaranteed and does not always detect defects in the title. Owners title insurance will protect you against un-caught title problems and the costs associated with defending your rights to property.
Owners Title Insurance Extent of Coverage
Owners title insurance is a one-time charge at closing that will remain valid for the entire time that you own the home. You can purchase it at a later time, but it is normally less costly when purchased at closing. The cost is based on the amount of the mortgage.
MA Owners Title Insurance Details and Items Covered
Owners title insurance common coverage includes…
- Fraud related to the execution of documents.
- Pressure on a seller or executor (of a will).
- Impersonation by those pretending to be owners of a property.
- Erroneous marital status of a seller.
- Mental Incapacity of sellers.
- Transfer by a minor.
- Non-delivery of deeds.
- Unresolved claims not displayed onthe records.
- Mis-indexing at Registry of Deeds.
- Clerical glitches in recording legal documents.
- Delivery of deeds proceeding the passing of a seller.
- Deeds executed under unauthorized powers of attorney.
Some policies additionally cover…
- undisclosed heirs.
- Wills not properly probated.
- Incorrect interpretation of wills.
- Birth of heirs after the date of a will.
- Inadequate land surveys.
- Incorrect legal descriptions.
- Confusion due to identical names.
The above information is simply an overview. Consult a local title company for up-to-date MA owners title insurance details and pricing, as they typically vary based on the provider.
