Monday, November 19, 2018
Overview of Title Insurance in Real Estate
A senior staff attorney at BETA Abstract LLC, Marc Rovner is a longtime resident of East Rockaway, New York, home of his beloved ice hockey team the New York Rangers. In addition to overseeing BETA’s business development in New York, New Jersey, and Florida, Marc Rovner of East Rockaway has taught a course on title insurance at Hofstra University.
In real estate, title insurance protects both the owner and any lenders against financial loss due to any faults in the title to a property. Unlike traditional insurance, which protects against future claims, title insurance covers claims for past errors and occurrences, including forgery, unpaid mortgages and taxes, omitted heirs, and limitations on the use of the property. Property owners and outright purchasers of property may elect to obtain a title insurance policy. However, property buyers who borrow money to make the purchase are required to secure title insurance to protect the lender from potential liability in case the seller fails to transfer the ownership rights. Title insurance requires a one-time payment, which is generally initiated in escrow after a purchase agreement has been completed.