Title Insurance – What is it and What is it used for!
- Title insurance can be used for several purposes:
- For mortgage fraud
- For coverage for defects with title
- Gap Coverage
- Gap Coverage is a way that allows lawyers to close a deal quickly before they have registration at land titles
- For defects with title – it means there can be coverage to help pay to fix a problem with the property that an RPR would have shown.
- Common issues that title insurance can be used for are fences being built over the property line, encroachment issues, lack of development permits, setback issues, etc.
- Title issues is an alternative to a real property report in terms of closing a purchase and sale. But clients should remember that it is insurance just like any other form of insurance and it does have exclusions too
Some lenders require a buyer to have title insurance regardless of whether they get an RP
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