Galaxy Settlements: Title Insurance FAQs

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Title Insurance is a policy that protects the buyer's ownership rights to a piece of real estate. It provides a detailed description of the property and any limitations to the buyer's ownership. This insurance guarantees that the property being purchased is free from any undisclosed liens, ownership disputes, or other clouds in title.

Title Insurance is necessary because when purchasing a property, there is always a risk of encountering issues with the title, which can lead to costly legal battles. Title Insurance provides a layer of protection for the buyer, ensuring that their investment is secure.

When you acquire your Owner’s Title Insurance Policy for your Real Estate from Galaxy Settlements it will protect you from a wide variety of hidden risks, including mistakes in recording legal documents, forged deeds, releases or wills, undisclosed or missing heirs, deeds by mentally incompetent persons or minors, deeds executed by invalid or expired power of attorney, fraud, liens for unpaid taxes, and undisclosed but recorded federal or state tax liens, prior mortgages, judgments, or lawsuits affecting the land. Trust Galaxy Settlements to safeguard your investment with comprehensive title insurance coverage.

An Owner's Title Insurance Policy remains in effect for as long as the buyer or their heirs have an interest in the property. At Galaxy Settlements, we provide Title Insurance Policies that can protect your investment for as long as you own the property.

Typically, the buyer is responsible for paying for Title Insurance. However, in some cases, the seller may agree to pay for it as part of the sale negotiations.

Lender's Title Insurance protects the lender's interest in the property, while owner's Title Insurance protects the buyer's ownership rights. Most lenders require borrowers to obtain lender's Title Insurance, but it's up to the buyer to decide whether or not to purchase owner's Title Insurance.

The cost of Title Insurance varies depending on the state, the property's value, and the Insurance company. In most cases, the cost is based on the property's purchase price. It's a one-time fee paid at closing.

No, Title Insurance is not transferable. If you sell your property, the new owner will need to obtain their own Title Insurance policy.

If a title issue arises after the sale has closed, the buyer can file a claim with their Title Insurance company. The company will investigate the claim and may provide legal representation to defend the buyer's ownership rights. If the claim is valid, the Title Insurance company will compensate the buyer for any financial losses incurred as a result of the issue.

Title Insurance is not required by law, but it is often required by lenders as a condition of the mortgage. It's up to the buyer to decide whether or not to purchase owner's Title Insurance.

Title Insurance should be purchased at the time of the property's purchase, as it provides coverage for any issues that existed prior to the sale.

A title search is an examination of public records to determine the ownership history and any liens or encumbrances on a property. Title Insurance companies typically conduct a title search before issuing a policy to identify any potential title issues.

In the vast majority of cases, buyers have the right to choose their own Title Insurance company.

If you purchased a property without Title Insurance, you may be at risk for any title issues that existed prior to the sale. It's possible to purchase Title Insurance retroactively, but it can be expensive and difficult to obtain. It's best to obtain Title Insurance at the time of purchase to ensure your ownership rights are protected.

A title defect is any issue that affects the ownership rights of a property. Common title defects include unpaid taxes, liens, encroachments, and missing heirs.

Title Insurance typically does not cover zoning issues. It only covers issues related to the ownership of the property.

A quiet title action is a legal proceeding used to clear any defects or claims to ownership of a property. It is typically used when there are multiple ownership claims or other title issues.

Yes, you can purchase Title Insurance for a property you inherited. It's a good idea to obtain Title Insurance even if you inherited the property, as it can protect you from any title issues that may have arisen prior to your ownership.

If you sell your property before the title issue is resolved, the issue may transfer to the new owner. It's important to resolve any title issues before selling a property to avoid legal disputes or financial losses.

Title Insurance may cover boundary disputes if the dispute arises from a title issue. However, it may not cover disputes related to survey or boundary line disputes.

Enhanced Title Insurance provides additional coverage beyond the Standard Policy, such as protection against zoning violations, building permit violations, and post-policy forgeries. It is typically more expensive than a standard policy.

No, Title Insurance only covers defects that existed prior to the sale. It does not cover issues that arise after the sale.

Title Insurance can be canceled before the sale closes, but once the sale is finalized, the policy cannot be canceled.  Remember, it is a one-time cost so once you have the policy, it covers you and your heirs throughout the course of the entire length of ownership.

You can always rely on the team at "Galaxy Settlements" to answer all of your Real Estate Title Insurance questions.  Contact us today at admin@galaxysettlements or call us directly at 410-320-4100 so we can get all of your questions answered quickly!