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1159 S. Clayton St. Denver, CO 80210

Denver, CO 80210

Who Pays For Title Insurance, What Does Title Insurance Not Cover

Title insurance is a company that protects those willing to buy homes from the prospect of anyone who might try to contest legitimacy as a new homeowner. We have two types of policies in title insurance. There is one that protects a buyer and the other one, the lender.

Who Pays For Title Insurance?

 According to title insurance general rule, the home buyer is the one responsible for paying both lenders title insurance and owner’s title insurance. This payment will depend on the amount of coverage you are capable of paying for, ranging from 150 dollars to 1000 dollars. 

Nevertheless, we do not have a rule that demands that the buyers will have to pay for the owner’s title insurance. At times after negotiations, the seller might end up paying for both tittle insurance on behalf of the buyer. Such negotiations may happen as a marketing strategy whereby the seller wants to get a buyer at a faster rate. Besides, other factors may affect who is to pay for title insurance. 

A good example is whereby a home buyer is looking for a home in the sellers’ market. In such a situation, the buyer will be responsible for paying for the title policy payment. Another case is where the buyer and seller are having a friendly negotiation, and they agree to share the cost, each one of them agreeing to pay 50 percent of the total cost. 

The Two Forms Of Owners Title Insurance

 On the forms of title owner insurance, we have two basic policies that provide coverage to the owners of real property. These policies are ALTA 2006 Owners policy. It offers standard coverage and the ALTA 1987 Residential Owners policy. This extends coverage, OEC, for short.

The ALTA 2006 Owners Policy

 This policy ensures that the property is marketable, and it is issued to those owners having residential or commercial property. In addition, it also protects the owners’ against forgery, fraudulent errors in deeds mistakes in public records, also the errors in the proceeding that have happened prior to closing the transaction policies. You should have it in mind that title insurance, unlike other insurance companies, title insurance secures the past and not the future.

The ALTA 1987 Residential Owners Policy

 This policy is written in a plain language that is it intends to meet requirements emerging in some states. You should note that this policy is only issued on residential that is the single-family property and to only single-family houses. It provides the same coverage as the standard coverage policy. It also gives the homeowners broader coverage that was only given to mortgagees. They go-ahead to provide this protection to the homeowners:

 • The rights and claims to the parties in possession,

 • The access to easements that are not shown in the public records.

 • It allows homeowners to forcefully remove existing structures.

 What does title insurance not cover?

 As much as the aim of title insurance is to protect property owners for both residential and commercial properties against loses. There are some things that it does not cover. This includes:

 • Any unknown title defects.

 • The cases of encroachment issues.

 • If the property had any existing liens against it.

 • If we detect any case of title fraud

 • Any errors that may occur in the survey.

 • Any issues that will result in difficulties in the future when selling.

 • mortgage or leasing.

Who Picks The Title Insurance Company?

 The tough question here actually should be who will pay for the title insurance. The party that is going to pay for the title insurance should be the one to make this decision. A title company can greatly influence the deal between the buyer and the property seller. This is because transactions are done differently in different title companies. Therefore, you may not know who will choose the title company as it will depend on your negotiations between the buyer and the seller.

Why You Should Choose A Title Company

 Anyone who wants a clean transaction and values his or her property should consider title insurance. Therefore if you have a property that you are willing to sell or on the other hand, wants to buy, you should consider using a title company.