Generally we
know about title loan especially car title loans in which the loan amount is
given based on the value of the car that is kept as the security. But title
insurance is entirely different from that. The title insurance is a form of
insurance which can be also said as form of indemnity that protects the holder
from financial loss due to the damage of loss happened to property.
This kind of
insurance is mostly taken by the people like lenders where the borrower’s
purchases just covers only the protected property of lender. The most common
title insurance will be the owner’s title insurance where the compensation is
paid for the seller to protect the buyer’s equity in the property and in some
cases it is kept as a separate option too.
How title insurance works
Mostly in
this field, the title means as guarantee or security given over a property or
product or land etc. This is why lenders accept only the clear title as it is
the necessary condition in any kind of transactions especially in real estate. The
major duty of companies like titlecompanyst Petersburg is to do a check and search about every title or liens
of any kind of request which is kept
against them before they can grant sanction on it.
What is title search?
An intense
examination should be done from the public records to determine and confirm
whether the property which is going to be used as title has legal ownership in
name of title search and this can be used to find out whether there are any
other claims are there on the property. The title can be considered as a dirty
one if it falls under the violation codes of erroneous surveys and unresolved
building code.
Generally
title insurance helps in protecting both real estate owners and the lenders in
a financial means if any sort of damage occurring from liens, encumbrances or
defect in the title or actual ownership of the property. The title insurance
protects the property from past occurrences while the general insurance will be
protecting from the future incidents.
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