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When you buy property and obtain a purchase money mortgage at that time, the property is pledged as security for that mortgage loan. To insure against title risks, the lender requires assurance from a strong guarantor that the title to the property is free from defects. This is done by issuance of a Lender's Policy of title insurance that the Buyer pays for. This coverage is effective only for a long as that mortgage loan is outstanding and as the balance of that debt is pad down the coverage under that policy goes down as well. However this lenders policy protects ONLY the lender and without an Owners Policy of title insurance you, the Buyer, remain unprotected.

An Owners Title Policy is a contract that protects you according to the contract terms against loss or damage due to title defects or undisclosed liens. This insurance contract is issued by the title insurance underwriter and guarantees that the insurance underwriter will undertake at its own expense the defense of your claim to title in legal actions alleging the title to be other than as insured.

For a one-time premium paid during the closing of your purchase, the protection of an Owners Policy can be secured providing protection against the risks of future loss arising out of events that may have happened in the past.

Having a one-time premium paid during the closing of your purchase, the protection of an Owners Policy can be secured providing protection against the risks of future loss arising out of events that may have happened in the past. Having the protection of an Owners Policy adds value to your investment by reducing the future cost of lenders title insurance coverage in the event of a future refinancing of the debt.



Owners Title Insurance

When you obtain a mortgage, the property you purchase is a pledge as security for the loan. To protect against risk, the lender requires assurance that the title to the property is clear, and this is done through a loan policy of the title insurance. However, without an owner's policy of title insurance, the buyer is unprotected.

An owner's policy of title insurance is a contract that protects you, according to the contract terms, against loss or damage due to title defects. This contract is backed by the title insurance underwriter and serves as a written guarantee that your underwriter will undertake, at its own expense, the defense of your title in all legal actions or proceedings alleging the title to be other than as insured.

For a one-time premium, paid during the closing process, an owner's policy of title insurance protects against future losses arising out of events that may have happened in the past. In most cases, an owner's policy can be issued at the same time as the loan policy, usually for a nominal one-time fee.

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