If you were offered a deed to the Brooklyn Bridge for a million dollars, would you take the deed and pay the million dollars? That would be a great deal only if the deed gave you ownership of the bridge and a disaster if the deed were just a fancy piece of paper.
That risk is controlled by title insurance which sellers promise to provide to buyers. An insurer of land titles will protect a buyer against certain risks posed by rights and interest third parties may have in the land.
The insurer will investigate the existence and extent of the seller's interest in the relevant property by examining public records and otherwise. If and when it is satisfied that the seller is the true owner of the property, it will commit itself to insure the seller's title against the claims of others, subject to certain exceptions.
That risk is controlled by title insurance which sellers promise to provide to buyers. An insurer of land titles will protect a buyer against certain risks posed by rights and interest third parties may have in the land.
The insurer will investigate the existence and extent of the seller's interest in the relevant property by examining public records and otherwise. If and when it is satisfied that the seller is the true owner of the property, it will commit itself to insure the seller's title against the claims of others, subject to certain exceptions.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.