The differences in these two are staggering. Warranty deeds are not normally used for residential properties and with good reason, as you will soon see. To be fair with this explanation we will give you pertinent information on both so you can see where they have nothing in common.
Tile insurance is a good thing to have when purchasing a mew house. The lenders know of this and they generally require a lender's title insurance policy to be bought by the buyer before agreeing to lend them the money for he mortgage.
The title insurance is purchased when the escrow on a new home is closed. In the United States it cost an average of 600-700.00 for a policy and if you want coverage for other things that may come up that could jeopardize a title you need to purchase an extension. This can run you 50% of the total of the original policy.
Title insurance is one item that the parameters of who has to pay are set by the county. Generally both buyer and seller pay half of it, this is done by mutual agreement. The lender's policy is the sole responsibility of the buyer. Title insurance is a necessary evil. Title's can have tax liens, houses can have sub-division violations or border disputes that never show up in a title search.
These things are found out after the dale and you get stuck with the lemon. That is why the extension to the title insurance policy is important it covers all of the nasties that could possibly come up. The payment for title insurance is made only once and the policy last for as long as you or one of your heirs owns the property.
The lender's title insurance policy protects only them, that is the reason why you need to invest in a policy of your own. There have been houses sold that were never really owned by the seller and the real owners have every right to demand their property. With title insurance you will be out of everything and mired in legal problems. This is not something to take lightly it does happen more often than you would think.
A warranty deed is only good as long as the seller is alive. It only attests to ownership and the right for the person to sell the property. If the title fails to be as the warranty implies you can sue the seller. The obvious problem here is that if the person is dead, there is no one to sue. The most important points of a warranty are
* The seller declares that they are the rightful owner of the property and has legal right to sell it.
* The seller assures there are no types of liens or other types of encumbrances.
* The seller declares that if the title has any problems they will compensate the new homeowner.
Tile insurance is a good thing to have when purchasing a mew house. The lenders know of this and they generally require a lender's title insurance policy to be bought by the buyer before agreeing to lend them the money for he mortgage.
The title insurance is purchased when the escrow on a new home is closed. In the United States it cost an average of 600-700.00 for a policy and if you want coverage for other things that may come up that could jeopardize a title you need to purchase an extension. This can run you 50% of the total of the original policy.
Title insurance is one item that the parameters of who has to pay are set by the county. Generally both buyer and seller pay half of it, this is done by mutual agreement. The lender's policy is the sole responsibility of the buyer. Title insurance is a necessary evil. Title's can have tax liens, houses can have sub-division violations or border disputes that never show up in a title search.
These things are found out after the dale and you get stuck with the lemon. That is why the extension to the title insurance policy is important it covers all of the nasties that could possibly come up. The payment for title insurance is made only once and the policy last for as long as you or one of your heirs owns the property.
The lender's title insurance policy protects only them, that is the reason why you need to invest in a policy of your own. There have been houses sold that were never really owned by the seller and the real owners have every right to demand their property. With title insurance you will be out of everything and mired in legal problems. This is not something to take lightly it does happen more often than you would think.
A warranty deed is only good as long as the seller is alive. It only attests to ownership and the right for the person to sell the property. If the title fails to be as the warranty implies you can sue the seller. The obvious problem here is that if the person is dead, there is no one to sue. The most important points of a warranty are
* The seller declares that they are the rightful owner of the property and has legal right to sell it.
* The seller assures there are no types of liens or other types of encumbrances.
* The seller declares that if the title has any problems they will compensate the new homeowner.
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