There are several costs that come when you close on Providence real estate. One of the most important is title insurance. If your new Providence home purchase, you might not know why title insurance is necessary. Rest assured, it is. Title insurance ensures that there won’t be any questions about your ownership of the house. There are lots of scenarios that could affect your title. Maybe someone didn’t get the signature of an estranged spouse a couple of sales previous. You don’t want someone turning up saying they have a claim to the property. Or an unpaid contractor could have put a lien on the house. Truly, the possibilities are endless.
Title Insurance Protects Your Investment in Your New Providence Home
In order to protect your right to your Providence real estate purchase, your lender will require that you buy title insurance. There is both lender’s title insurance, which covers the lender’s investment, and owner’s title insurance, which covers your investment. Whether the buyer or the seller pays for title insurance is something you’ll negotiate. Make sure the policy covers not only the purchase price of the house but also inflation and protects you from liens against the house after closing.
Title insurance is a one-time cost. Once you’ve bought it, the title company will search through all the records it can find that refer to the house, its various owners, whether mortgages and liens are paid off, whether there are any easements, and legal actions. The company may search digitized records, as well as paper records. The insurance covers you in case the title company missed something, too.
Most lenders will have a company they usually work with. The easiest and cheapest thing to do is just get your policy from the same company. If you have a strong preference for another company, you can negotiate with the lender.