Difference Between Owner Title Policy And Lender The Major Difference Between An Owner’s Title Insurance Policy And A Lender’s Title Insurance Policy Is?

The major difference between an owner's title insurance policy and a lender's title insurance policy is? - difference between owner title policy and lender

Title insurance covers an error in the title search when purchasing a property. Suppose, for example, you buy a house for $ 100,000 and think you're free and clear title to the house. Following are the closing, we find that the previous owner had a car accident, his fault, and there was a court ruling against him was filed, a week before closing. And the case has a lien on his house for $ 50,000 filed dollar, two days before its closure. This privilege was discovered in the title search. In this case, since you now the property if the owner can not pay 50,000 U.S. dollar fine, do not sell their homes without paying the record (even shocking, but true!).

Your mortgage lender requires a lender title insurance does pay the lender. If this scenario is seen as the first, the title insurance company reimbursed the lender by assets lost in this problem. It is, however, the cost of their lost heritage. Only the owner includes the owner.