What is Title Insurance?

The title insurance system originated in the 1860s. Title insurance is usually described as "the judgment of the title insurer on the validity of the title. If such judgment proves to be wrong or causes loss, then the title insurer will make compensation". It can also be said that title insurance is an insurance policy, which protects the insured or the insured from loss when the actual property status of the real property is inconsistent with the status of the property being insured.

Title insurance

Right!

The title insurance system originated in the 1860s. Title insurance is usually described as "the judgment of the title insurer on the validity of the title. If such judgment proves to be wrong or causes loss, then the title insurer will make compensation". It can also be said that title insurance is an insurance policy, which protects the insured or the insured from loss when the actual property status of the real property is inconsistent with the status of the property being insured.

After more than 100 years of development, title insurance has achieved a high degree of development in the United States. At present, there are about 100 large and small title insurance companies in the United States that have obtained operating licenses. The income is about 12 billion U.S. dollars. Services have been brought to dozens of countries around the world, of which the largest market share is

The policyholders of property insurance are mostly the transferor of real estate transactions and the transferees (borrowers, mortgagors) who purchase real estate by means of housing mortgage loans. In rare cases, the policyholders are the transferees who purchase real estate without using housing mortgage loans. The beneficiaries of title insurance may be the transferor, the assignee, or the mortgagee (most of the mortgagee is a commercial bank). For the transferor, the beneficiary way of the property right insurance is to resolve the legal costs such as lawyer's fees and litigation costs caused by the property right dispute and the process of handling the property right dispute; for the transferee, the property right insurance guarantees the purchase of There are no flaws or legal disputes in real estate property rights; for the mortgagee, the benefit of property rights insurance is to ensure the complete realization of the mortgage rights.

The subject matter of title insurance is essentially the accuracy of the title report. The property right report is an analysis of the status of property rights, including the appearance description of real estate, who the property owners are, the co-owners and restrictions on powers, power disputes and corresponding disputes. Before going through the property insurance formalities, the insurance company first conducts a property right verification and generates a property right verification report. If the property right has defects and disputes not recorded in the report and causes losses to the insurer, the property right insurance company is responsible for eliminating defects, resolving disputes, Should bear legal expenses or be compensated by the title insurance company within the insurance amount.

The term of title insurance is "permanent and valid for life" and ends when the guaranteed risk disappears. The insurance policy is usually issued after the house is transferred to the owner and registered. As long as the insured has real estate ownership, the policy is valid Even if the insured dies, then his successor or beneficiary holds the title and notifies the title insurance company, the policy is still valid, but the policy ends after the house is sold. A homeowner's title insurance policy is issued after the lender starts to provide loans and is registered. The policy ends when the home buyer repays the loan.

The title verification of the title insurance company is an important part of issuing title insurance. The title insurance company will collect all information about the property according to known and visible channels. He will review the history, public records, and court records of the property. Many public documents, including property and name indexes, are investigated to confirm that the rights of the seller are correct and to try to find any possible problems. For example, the real estate tax that the owner should pay but not pay, the loan that has not been paid, the court's judgment on the former homeowner's debt, whether there are restrictions on the use of the real estate, whether it is a potential problem that may affect the smooth progress of the transaction, etc. The First American Corporation owns the largest real estate information database resource in the United States. He not only facilitates his own property verification, but also provides corresponding data for lawyers and other property insurance companies. A fundamental.