Do I need to purchase title insurance on my condo?
May 4, 2010 by
Filed under condo insurance
I am financing it through a bank.
Yes, I agree I should get it. My question is will the bank give a mortgage without it?
May 4, 2010 by
Filed under condo insurance
I am financing it through a bank.
Yes, I agree I should get it. My question is will the bank give a mortgage without it?
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Yes. If there was any issue with prevoius deeds or liens on the property before you will have coverage.
It is only for our protection
I’m not 100% sure but I believe the lender will require it. I’m a real estate agent and I’ve never had a situation where one didn’t.
Yes, all bank require title insurance.
Title insurance guards against claims to title (eg. other liens against a property, proper chain of title) This is done to ensure that the bank is in first position (set by recording date a lien is filed, oldest first).
Therefore, should something happen, and the bank need to foreclose, the property value would not be diminished by someone’s lien being paid off before theirs.
Title insurance covers the lender in the event of an error, and another claim to title affects their collateral. (the title insurance for a lender is only for the loan amount).