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Homebuyers must pay title insurance fees before they can close on a home. The insurance is important because it protects you and the lender in the event that the seller did not have legal ownership of the property. Despite the fees, what you stand to lose without proper coverage is worth more than the coverage itself, even though the likelihood of you using the coverage is low. Your agent should start you on the process of paying title insurance fees soon after you sign your purchase agreement. Your agent will usually choose the insurer for you, using one of the five major United States underwriters. Homebuyers will pay one-time title insurance fees in a standard process. In some states, the seller handles the costs. Suppose you don't purchase the coverage? There are many things that could go wrong, should you opt not to buy. A renter who is pretending to be a seller may knowingly sell you a home they don't own. Standard title issues are usually more complicated. There may be a problem in the home's past-the seller may have bought the property from a person, unaware that their ex-spouse still has co-ownership and hadn't signed on the sale. Or maybe the seller inherited the home from an old will. The up-to-date will may leave the property to someone else. Some problems do not include the house as a whole. Liens could possibly have been filed against the house, meaning people or agencies may have claimed the right to be paid from the proceeds of the property sale to settle the property owner's debts. The title insurance fees homeowners must pay are well worth it when considering these worst-case scenarios. Insurance companies verify the clarity of a title by doing a thorough search before issuing a policy. This search involves perusing public documents such as bankruptcy filings, deeds, divorce decrees, wills, court judgments, and tax records involving the property in question. The finished search produces a title report, which highlights potential trouble before homebuyers can continue with the sale. It also gives the option to call the sale off completely, in the case of serious issues. The policy will cover the insured party for any covered losses and legal fees that may result from title problems such as undisclosed errors, forgery, omissions in deeds, or unpaid real estate taxes. Homebuyers should make it a point to ask about the services and fees that are included in the premium or any title insurance fees that may be charged to you separately. Ultimately, the homebuyer will not be forced to fix any title problems. These are the seller's problem, and your agent will normally contact the seller's agent should a defect in the title surface. Know you're protected when you pay title insurance fees. Michigan area residents can count on Liberty Title. Click here for info: http://www.libertytitle.com/products-and-services/.
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