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Legal Question - re: Real Estate
Hi - I know that there are a few lawyers on here, so I just thought I would throw this out there.
We moved last year, and while we had a really great experience with the lawyer referred to us by our agent, there is one thing that has been bothering me. At our closing, it was suggested that we purchase additional title insurance. I had never heard of this before, and I thought that was what we had already paid for a title search for. Well, we decided to purchase it, and now we still have no tangible policy that we paid for in hand. When I have contacted our lawyer about it, I was told that it just takes a while.
So the question I have is - is that typically how it works? Where it takes almost a year to be issued a policy? Something about it seems off to me, and I feel that we have wasted $500.
Thanks for any input!
Re: Legal Question - re: Real Estate
I'm no attorney, but my understanding when I bought my home was that the title insurance protects the owner in the event that someone pops up and lays claim to the property. Even though you are paying for it, assuming you have a mortgage, the bank is really the beneficiary of the title insurance. I wouldn't think you'd get a policy for title insurance.
It's worth a call to the lender and/or your attorney to explain it to you- you paid them well for your services, so you're entitled to an explanation. Good luck!
Did you get a copy of the mandatory title policy? I would call the title company directly. I'm actually not sure if you get a separate policy for the market rider. (I only do RE sales, so I'm not that familiar w/ buyers side).
Labbie is correct in that the mandatory title insurance only covers up to the amount of the mortgage. So if someone made a claim to your property, your mandatory title insurance would only cover the mortgaged amount. By purchasing the market value rider, you are covered up to full market value.
Thank you both for the replies!
Hockey, yes I am sure that we have a copy of the title policy somewhere in our papers from the closing. This was a second policy (market value rider) that was to protect us for the market value instead of just protecting the bank for the mortgage value. I am just concerned as we are supposed to receive the rider for this policy that was an additional $500 (on top of the fees paid for the title search required by the bank) and now almost a year later we still have nothing in hand to show for it. When I have contacted our lawyer, she stated that it takes a while and that she will forward it when she receives it. At this point I just feel it may have been completely unecessary, and we may have just wasted $500.
I am just wary because I don't know anyone who has ever bought this type of insurance before, and without any paperwork to actually go over it doesn't give piece of mind.