A Brief Explanation of Title Insurance
There are two types of Title Insurance:
1. Mortgage Title Insurance
2. Fee (or Owner's) Title Insurance
Both forms of title insurance work the same way. The difference
between the two is the insured party. A mortgage title insurance policy insures
the lender. A fee policy insures the owner.
A title search is performed on the public records in the property's county
clerk's office. The search is done to determine whether or not someone can make
a claim to the subject property. The term good and marketable title refers
to a clean chain-of-title. In other words, there are no adverse parties that
have a legal claim to the subject property.
Insuring that my clients receive good and marketable title is one of the most
important services I can provide. As a buyer, you will be required to
obtain Mortgage Title Insurance by your lender. However, I highly recommend you
obtain an Owner's Policy to protect your interests. I will
gladly discuss the benefits with you. Often an Owner's Policy can be obtained
at the same time as a Mortgage Insurance Policy, and at a discounted rate.
Title insurance rates are regulated by New York State. No title insurance
company can charge more for a policy than any other company.