Login | Sign Up















https://myersandmyersrealestate.com

Myers & Myers Real Estate

(505) 401-7500
myersandmyersrealestate@gmail.com
  • Menu
  • Sellers
    • FAQs Home Sellers
  • Buyers
    • FAQs Home Buyers
    • Advanced Property Search
    • Albuquerque First Time Home Buyers $500 DP
    • Join Deal Alert
    • Interactive Map Search
  • Albuquerque
    • New Listings In Albuquerque
    • Albuquerque Foreclosures
    • Albuquerque Open Houses
    • Ventana Ranch Homes For Sale
  • Rio Rancho
    • New Listings In Rio Rancho NM
    • Rio Rancho Foreclosures
    • Rio Rancho Open Houses
    • Cabezon Homes For Sale
    • Loma Colorado Homes for Sale
  • Corrales
    • Corrales Open Houses
  • Valencia County
    • Los Lunas NM Real Estate
    • Bosque Farms NM Real Estate
    • Homes For Sale in Jubilee
    • Homes For Sale In Belen NM
  • East Mountains
    • Tijeras NM Homes For Sale
    • Sandia Park NM Homes For Sale
    • Paa-ko Ridge Golf Club Homes
    • Edgewood NM Homes For Sale
  • Home Search
  • Contact

Home » What Is Title Insurance?

What Is Title Insurance?

What Is Title Insurance

What Is Title Insurance? Albuquerque NM

I hope this article will answer your questions what is title insurance?

Title insurance is a contract under which the policy holder is protected from losses arising from defects in the title.  A title insurance company determines whether title is insurable, based on a review of the public records.  Unlike other insurance policies that insure against future losses, title insurance protects the insured from an event that occurred before the policy was issued.  Title insurance is considered the best defense of title.  The title company will defend any lawsuit based on an insurable defect and ply claims if the title proves to be defective.

The premium for title policy insurance is a one time payment paid at closing.  The cost of the policy is related to the value of the real estate.

After examining public records, the title company usually issues what may be called a title commitment to issue a title policy.  This describes the type of policy that will be issued and includes:

  • Name of the insured party
  • Legal description of the real estate
  • The estate or interest covered
  • Conditions and stipulations under which the policy is issued and
  • A schedule of all exceptions, including encumbrances and defects found in the public records and any known unrecorded defects.

A standard coverage policy normally insures the title as it is known form the public records.  In addition, the standard policy insures against such hidden defects as forged documents, conveyances by incompetent grantors, incorrect marital statements, and improperly delivered deeds.

Extended coverage, as provided by American Land Title Association (ALTA) policy, includes the protections of the standard coverage policy plus additional protections.  An extended policy protects a home owner against defects that may be discovered by inspection of the property: rights of parties in possession, examination of survey, and certain unrecorded liens.

Title policy insurance does not offer guaranteed protection against all defects.  A title company will not insure a bad title or offer protection against defects that clearly appear in a title search.  The policy generally names certain uninsurable losses called exclusions.  These exclusions include zoning ordinances, restrictive covenants, certain water rights, and current taxes and special assessments.

There are two types of title insurance.  An Owner’s Policy is issued for the benefit of the owner or new buyer and his or her heirs.  A lender’s policy is issued for the benefit of the mortgage company.  The amount of coverage depends on the the mortgage loan.

In Albuquerque Metro area, it is customary for the seller to pay for the standard owner’s policy and the buyer pays for the mortgagee policy.  I hope this article will answer your question, What is title insurance?

Use our website to search all homes for sale in Albuquerque NM.

Facebooktwitterredditpinterestlinkedintumblrmail
Facebooklinkedinyoutubemail

Posted in: FAQs Albuquerque Home Buyers, FAQs Albuquerque Home Sellers, FAQs Albuquerque Real Estate

Sign up for New Home Alerts Now!

RegisterLogin















Post navigation

« What Is A Seller’s Disclosure?
Rio Rancho NM Real Estate For Sale »

Myers & Myers Real Estate, Inc.

John Myers
Qualifying Broker
License #19085

(505) 401-7500
(505) 401-7500
myersandmyersrealestate@gmail.com
Follow

Facebooklinkedinyoutubemail

Albuquerque Real Estate Agents

  • John Myers QB
Share

Facebooktwitterredditpinterestlinkedintumblrmail

Albuquerque Real Estate

  • Albuquerque Real Estate Blog
  • Sitemap
  • Privacy Policy
© 2021 · Myers & Myers Real Estate, Inc. · 505-401-7500 · Sitemap · IDX Sitemap · IDX XML Sitemap · Albuquerque NM Homes for Sale
Disclaimer - All Rights Reserved by Myers & Myers Real Estate, Inc.
NM Real Estate Commission Rules

Licensed in New Mexico | Albuquerque NM Homes & Real Estate