Photo Scanner: Lender s Title Insurance

Monday 12 November 2012

Lender s Title Insurance

There are two types of policies - owner and lender. Just as lenders require fire insurance and other types of insurance coverage to protect their investment, nearly all institutional lenders also require title insurance [a loan policy] to protect their interest in the collateral of loans secured by real estate. Title insurance is acceptable to lenders in lieu of their survey / real property report requirements. Available faster and generally less expensive than a new survey, title insurance is becoming the solution of choice for satisfying this lending condition. Title insurance allows transactions to close before documents are fully registered at the Land Title Office. By insuring against loss from other interests that may be registered against title before full registration occurs, title insurance provides smooth closings even for last minute transactions. Certain defects such as encroachments shown on surveys or prior undischarged mortgages registered against title may be covered by title insurance. These are underwritten on a case-by-case basis. If it is determined that title insurance is available to cover loss from the defect, the transaction can close smoothly and on time.