What you should know about NJ Title Insurance

Before any discussion on NJ title insurance, it is necessary to define title insurance itself and understand the importance of title insurance in the world of property and insurance. To begin with, title insurance is an insurance policy that is given out during the process of real estate purchase to protect against mistakes or errors in the title of the real estate or the property. Title insurance is crucial in many real estate transactions, protecting people against faulty deeds, defects in the title of a policy or mortgages.

How exactly does title insurance works? Before a loan is finalized or a sale of real estate is closed, all public records pertaining to the property are searched. These include all judgments, tax assessments, and matters such as divorce and bankruptcy that may have an effect on the policy. This is done so that buyers and lenders know exactly what liabilities they have and what taxes or mortgages they have to pay off.

In spite of this detailed search, there can be mistakes or defects that can land a buyer in huge losses. These may be in the form of forged or fraudulent deeds, missed judgments, and tax liabilities and mortgage payments that may have been left out of searches. Title insurance is designed to take care of these defects and omissions and protect the buyer as well as the lender in the sale.

Unlike all other types of insurance, the premium for title insurance is paid only once. Additionally if the owner's and the lender's policies are purchased together, there may significant discounts.

There are essentially two types of title insurance. One is the lender's policy and the other is the owner's policy. The lender's policy is taken out by the bank and the bank itself is the beneficiary. The policy protects the lender or the bank. The owner's policy protects the buyer for as long as he or she has an interest in the real estate.

Title insurance has become more and more important in the commercial world, given the fact that the real estate is the most valuable asset now. With the help of title insurance, you can be reimbursed for any losses tin case some other person stakes a claim to your property, provided this is covered by insurance.

Given the importance of title insurance, it is not surprising that there are a large number of law firms doing the work of title insurance in the country. There are also many Nj title insurance firms, who can provide anyone going into or owning real estate a great deal of protection. If you are considering the purchase of real estate in New Jersey, it is best that you consider buying title insurance to protect you in the case of any difficulty or trouble. Not having adequate title insurance could prove to be extremely damaging and costly proposition, should there be some mistakes or defects in the deeds. Title insurance is definitely a prudent thing to do.

New Jersey title insurance is a full service agency that offers a complete range of title services are a capable and experienced title New jersey title insurance company in the

country.

This article has been taken from http://greenlabletitle.wordpress.com/2012/10/03/what-you-should-know-about-nj-title-insurance/