Columbia SC Real Estate and Homes for Sale

The other day I wrote about Columbia SC Real Estate Closing Costs. One of the purchasers closing costs is Title Insurance.  Often misunderstood, what exactly is title insurance?  Why do you need it. 

Columbia SC Real Estate buyers know they need hazard (homeowners) insurance.  It protects you in case of fire, weather, and many other circumstances that can devalue, damage, or destroy your physical property.  What about the title? 

What would you do in this situation?  You purchase a piece of Columbia SC Real Estate, and years down the road, someone claims that they own the house.  They claim you bought your house when they owned the legal right to it.  What would you do?

That is why you have title insurance.  Title insurance will protect you and will cover any losses that you might incur due to any defects in the title of the real property or legal expenses incurred in defending your Columbia SC Real Estate home in court.

There are two types of title insurance offered.  Title insurance is usually required as a stipulation of a loan on the property.  Therefore, you have a Lender’s Coverage and an Owner’s Coverage.  These are 2 separate policies.  The lender’s policy covers the lender and their interest in the property.  As you pay off the loan, the lender’s policy drops to what you owe on the property.  This is why you need an Owner’s policy.

Usually just $75 more, an Owner’s Policy will cover you separately from the lender.  Therefore, after you pay off the house, you will still be covered.  As well, when you owe 50% on the house, your 50% equity will be covered. 

A real estate transaction may become complicated when there are issues that may affect the rights of individuals who claim a right to a particular piece of property. Issues such as: Bankruptcy, Defective Deeds, Missing Heirs, Clerical Errors in Records, Forgery, Wills, Fraud, Mental Incompetence, Marriage & Divorce, are just a few of the problems that may surface, and could pose a threat to your title being free and clear of claims by others.

This is why it is important to pick a good Columbia SC Real Estate closing attorney.  Attorney’s typically ’sell’ and ‘issue’ the title policy at closing. 

I work closely with experienced attorneys in the Columbia SC Real Estate market.  I want to make sure your closing goes just as smooth as possible.  Let me know if I can help you in anyway!