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11.3
SELECTING
SERVICE PROVIDERS
Title
insurance
Title insurance
is important because, by providing you with an Owners Policy, they
insure that you have clear title to the property. If there are any
problems later, you can always go back to the title insurance company
and have them clear it up. Since it is customary for the seller
to pay for the owner’s policy, they have an interest in which company
is used.
However, you
are going to pay a fee to the title insurance company, too. This
is for the Lender’s Policy. The lender’s policy insures your mortgage
lender that there are no liens or judgments against the property
and that the mortgage will be in first position. In other words,
should you sell the property or refinance it, their mortgage gets
paid first, before any other claims against the property.
The lender’s
policy is less expensive than the owner’s policy.
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