Homebuyers who decline owner's title insurance sometimes think they are avoiding already high costs. However, they leave themselves vulnerable to the potential of a large liability in the future if a title claim is ever filed against the property they purchased. At the Law Offices of Marc E. Wiener, we can help guide you through the purchase of title insurance to protect your real estate interests.
In Vermont, there are two types of available title insurance, owner's title insurance coverage and lender’s title insurance coverage. If you buy a home through a lender, the lender may require that you purchase a lender's title insurance policy to protect the lender in the event of a title claim. The purchaser does not have any coverage under this type of title insurance. Owner's title insurance is available to the buyer at closing to protect your interests in the real estate. Both of these policies generally have a one-time premium that is paid at closing.
Title insurance is important because, even though the attorney goes to great lengths to complete a thorough title search for the property, sometimes unrecorded, mis-indexed, or forged deeds and mortgages are always a possibility. Because Attorney Wiener's last name is so frequently misspelled, he is all too familiar with how documents are not properly indexed. An owner's title insurance policy insures the home buyer as the legal owner of the property, with clear title to the property. Filing a claim against the title attorney is expensive and cumbersome, where recovering any loss under a title insurance policy is easier because title insurance companies must pay claims with funds that have been set aside specifically for that purpose.
We work primarily with two title insurance companies: