Title Insurance companies provide insurance for buyers and mortgage lenders against several kinds of title risks that can affect real estate trades including survey errors, legal description errors, negligence, forgery, liens and other encumbrances. Many lawyers now prefer their home buyer clients take out title insurance even if there is a recent survey.
While title insurance represents one more cost burden for closing, there are some cost savings enjoyed because title insurance was purchased. For example you would not need to pay for these otherwise required expenses:
This cost savings can amount to between one half to two thirds of the title insurance cost, depending on the title insurance provider and the area involved. Presently (2003), title insurance cost is about $300.
For information about local Title Insurance companies in your area and for an update on the cost or features contact your local real estate agent or lawyer.
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