Ameristar Mortgage Blog

Title insurance exists in the US in great part because of a comparative deficiency in the US land records laws. Title insurance is insurance against loss from defects in title to real property and from the invalidity or unenforceability of mortgage liens. Title insurance coverage lasts as long as the insured retains an interest in the land insured and typically no additional premium is paid after the policy is issued. Title insurance differs in several respects from other types of insurance.

RESPA makes it unlawful for any bank, broker or attorney to mandate that a particular title insurance company be used. In addition to the insurance premium, most title companies charge fees for searching the public records and compiling a report, which is used as a basis for issuing the insurance policy. Although owners are free to shop around for title insurance, many owners defer such decisions to lenders or real estate agents, and title insurance companies have sometimes used illegal tactics in marketing to those decision-makers. Consumers should inquire about the cost of title insurance before signing a real estate contract which provides that they pay for title charges. The owner’s policy insures a purchaser that the title to the property is vested in that purchaser and that it is free from all defects, liens and encumbrances except those which are listed as exceptions in the policy or are excluded from the scope of the policy’s coverage.

Ameristar Mortgage is your local Wisconsin and Illinois Mortgage Broker:

Dennis Hardy
Local: (608) 242-0826 x23
Toll Free: (877) 240-5840 x23
dennis.hardy@ameristarmadison.com
www.AmeristarMadison.com