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Title insurance is usually required by the Albuquerque New Mexico lender to protect the lender against loss resulting from claims by others against your new home. In some states, attorneys offer title insurance as part of their services in examining title and providing a title opinion. The attorney's fee may include the title insurance premium. In other states, a title insurance company or title agent directly provides the title insurance. Owner's Policy. A Albuquerque New Mexico lender's title insurance policy does not protect you. Similarly, the prior owner's policy does not protect you. If you want to protect yourself from claims by others against your new home, you will need an owner's policy. When a claim does occur, it can be financially devastating to an owner who is uninsured. If you buy an owner's policy, it is usually much less expensive if you buy it at the same time and with the same insurer as the lender's policy. Choice of Title Insurer. Under RESPA, the seller may not require you, as a condition of the sale, to purchase title insurance from any particular title company. Generally, your lender will require title insurance from a company that is acceptable to it. In most cases you can shop for and choose a company that meets the lender’s standards. Review Initial Title Report.
In many areas, a few days or weeks before the settlement or closing of the
escrow, the title insurance company will issue a "Commitment to
Insure" or preliminary report or "binder" containing a
summary of any defects in title which have been identified by the title
search, as well as any exceptions from the title insurance policy's
coverage. The commitment is usually sent to the lender for use until the
title insurance policy is issued at or after the settlement. You can
arrange to have a copy sent to you (or to your attorney) so that you can
object if there are matters affecting the title which you did not agree to
accept when you signed the agreement of sale. |
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