Title insurance
With a title insurance policy is one in the USA usual (liability) insurance , which in real estate transactions protects against financial losses. Insurance must be taken out for a mortgage-financed property purchase, since mortgage banks will not provide a mortgage loan without this insurance . If you don't need a mortgage, you are not obliged to take out legal title insurance, although this can still be useful.
The title insurance in the US is of particular importance as a legal record , unlike in many other countries, the indisputable property on land not guaranteed. The insurance offers protection in the event of legal problems with the entry in the land register (e.g. in the case of disputed property boundaries ), takes sides in the defense of the legal property claim of the property (e.g. in the course of divorce, death, contestation of wills, etc.) and protects against payment defaults up to the maximum amount covered the policy. The insurance is applied for before the final transfer of ownership ( English Closing ), taken out with the closing and paid for. The one-time premium payment for title insurance varies depending on the purchase price or loan amount and location, as the price of the insurance is regulated by the individual states.
literature
- Ernst-Uwe Winteler: Investments in the USA: Real estate oil, gas and gold investments. Springer-Verlag 2013, ISBN 3-322-8578-59 , p. 227.
