Do I Need Title Insurance For A Condo

What is Title Insurance

Until a problem arises, most people think that they can bypass the option of getting insurance. However, once a crisis hits, they are now stuck as it is too late. Therefore, most lenders make sure to require homeowners to purchase title insurance to protect their assets. Title insurance may cover all sorts of costs and damage that the property's previous owner might have left behind. No one wants to adopt all these problems. Therefore, with the purchase of title insurance, many financial burdens may be relieved of the new homeowner. The insurance costs range in prices depending on the property. However, the coverage is negotiable, you may add or leave out specific charges depending on the company you are purchasing through, and it will be a massive sigh of relief when you enter your new home with ease and peace, knowing that you are covered for much of what was previously done to the property.

How to Get Title Insurance

When purchasing a new condo, inspectors review the condo and mark up liens, loans, back taxes, etc. Once they complete their inspection, they send a copy of their findings to the condo buyer. At that point, the buyer can now purchase title insurance, which may cover many of the bills that they would otherwise face if they did not buy the insurance. Furthermore, title insurance is typically included in the closing costs of purchasing a condominium, and buyers will be presented with the option to buy once they enter their closing period. Lenders will offer them the opportunity to buy and title insurance companies they may use and buy through.
do i need title insurance for a condo

What Does Title Insurance Protect Against.

Title Insurance protects against charges that the previous owner had accrued during his ownership of the property and is then placed upon the new buyer. These charges may include faulty or forged title, document defects challenging the housing unit's classification as a condominium, unpaid encumbrances, and assessments, any title issues that were not discovered before you closed on the condo. Other major problems that may occur include, the previous owner could have skipped out on his taxes. There could be a tax lien attached to the property, a guest or visitor could have injured themselves inside or outside of the condo, and the owner could have refused to acknowledge or respond to the judgment, a previous owner could have had work completed on the condo without paying the contractor in full, or even that the condo could have been jointly owned and unfairly sold by one of the parties without the other's knowledge. Therefore, depending on the insurance terms, many of these problems may be covered under title insurance.

do i need to buy title insurance for my condo

Cost of Title Insurance

The purchase of title insurance range from $500-3,500 due to many variables. First, you might want to consider the company that you are purchasing from. Some lenders will assign you a company, whereas others will leave it up to you to find your own title insurance company to work with. Therefore, you should research and review each company in depth to see which is the best option for you. Furthermore, title insurance is also based on the property's location, property cost, and coverage limits. This means that if you are buying a large condo in a lovely place, odds are your title insurance will match your condo and be more expensive than if you were purchasing a condo in a worse neighborhood.
Furthermore, when reviewing your title insurance contract, you can make sure with your lender if certain things are included, such as HOA violation fees. Checking these small details and deciding what to omit from the contract can help you to save money. However, it is essential to make sure to have everything covered in the interest of your protection.