Many people ask us about what title insurance is and why they need it. To help better explain the necessity of title insurance, we’ve invited Deborah Baker with Canyon Title to come and talk to us a little bit about it.
Can you imagine buying a new home, only to find out later there are liens against the property and you don’t actually own it yet? You’ll have to pay even more money on top of what you’ve already spent in order to get those liens removed. Title insurance makes sure this doesn’t happen.
There are two different types of title insurance. The first is an owner’s policy. As a buyer, it insures you against losses or defects of ownership. It’s your policy until you sell the home.
The second type is a lender policy. This is for if you’re getting a loan. The bank is the party that’s insured in case you default and they have to foreclose.
In the Colorado real estate purchase contract, the owner’s policy is negotiable as far as who pays for it. As a buyer getting a loan, you would be responsible for that lender policy. However, you don’t need the lender policy if you’re paying in cash.
As for Deborah and Canyon Title, they take extra steps to ensure that the people they provide insurance to are protected. They have licensed title examiners who will search through county records of a property to look into any problems or potential problems that need to be taken care of before closing.
Two of the most common things that come up in their title searches are mechanic liens and judgment liens. If you don’t know about these before you buy, you’ll be stuck paying for them later.
Not only do Deborah and her team provide title insurance, they provide closing services to make sure everything is done properly. If you have any questions for them, email Deborah at email@example.com or give them a call at (720)-810-2489.
In the meantime, if you have any questions for us, you can always give us a call or send us an email. We’d be happy to answer them!