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Buying land, a house or a piece of property is probably one of the biggest investments that you will make during your lifetime. Therefore, it is important to protect it from all possible damages or fraudulent claims by buying various types of insurance coverage. One of the types of insurance which can protect your home or property from fraudulent or illegal disputes is title insurance. This type of insurance protects the owners and lenders of property from any losses or damage to the property that may arise from defects in the title of the property or encumbrances. Now let us see what the term "title" here implies. Simply put, the title to a property is the evidence that the owner of a property rightfully owns that property. Title insurance is a kind of insurance that safeguards one's property from claims against flaws, or from a third party that claims ownership to the property, cases of fraud, encroachments or incorrect records. This type of insurance can be availed by paying only a one-time premium during the closing of the escrow. An escrow refers to the process in which the funds from a transaction such as the sale of a property are held by a third party, who is generally the title company or an attorney. This is done before the transaction is completed. Now the question arises, why does one require title insurance? As a buyer or lender of real estate, one may need Eatontown title insurance to be protected against possible flaws in the property's title. It is indeed true that with title insurance, not only is the buyer at an advantage, but the seller or the lender also benefits. There are primarily two types of policies in the case of title insurance, including the owner's policy as well as the lender's policy. The former type of policy insures the new owner or the buyer of a piece of real estate, while the lender's policy insures the lender's security involvement. Before you go in for title insurance, you need to know how a title insurance policy is actually created. Once the escrow officer or lender creates the title order, the attorney begins with an investigation of the title. Once the search is conducted, a report of the preliminary findings is presented to the customer for his review and perusal. All the final documents are recorded as per the instructions of the attorney, after which the recording is confirmed, the funds are distributed and the dues are paid, leading to the actual creation of the title insurance policy. Title insurance offers protection, financially against potential title risks, some of which may be hidden, such as forged papers, unknown heirs or mistakes in the records. The insurer of the title will pay for protecting against such claims and will either clear the title or pay claims if they are valid. Therefore, while buying a new piece of real estate, it is important to do the necessary investigations and purchase title insurance protection for your property. To know more about greenlabeltitle.com and to gain some insightful knowledge on Eatontown Title Insurance Check our website This content has been taken from http://greenlabletitle.wordpress.com/2013/03/29/an-overview-of-eatontown-title-insurance/
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