Title insurance

Title insurance - is a relatively new type of insurance is atypical. Not all insurance companies practice it. But for property buyers this type of insurance will certainly be interesting. What? First of all, it is - a guarantee of full protection of the interests of the purchaser against all kinds of cases of loss of ownership of the purchased property. In Russian law there is no concept of "title insurance", although the need was compelling growth in transactions on purchase - sale of real estate or expensive items of movable property. According to various sources, up to 4% of all prisoners have contracts of transfer of title to real estate is terminated by the court. Moreover, the return of all funds paid to the buyer can not take place for objective reasons. This a gap in the protection of bona fide purchaser and is designed to solve the title insurance.



What types of risk can save title insurance apartment that you want to buy? What can you face after the transaction took place, and you have entered the desired parameters?

Errors in registration of purchase - sale;
The presence of the heirs of the seller having an indisputable right to the apartment;
Suddenly opened fact incapacity of the former owner, to deprive him of the right to sign any documents;
The illegality of any of the previous transactions which are making the right of ownership over the apartment;
Fraud sellers, leading to the invalidation of the transaction, etc.
Invalidity your full rights to the apartment may be due to many different reasons. Their list is given in the second paragraph of chapter nine of the Civil Code. Your insurance contract all possible cases should be listed by all means! Otherwise, this type of insurance is meaningless. Fear is the risk of loss of property rights after the transaction is completed. Fires, floods, war and seizure by law, deprives you of the object of property rights under this type of insurance does not fall. Title insurance will not help and apartments at the sudden announcement of persons entitled to reside in the purchased your meters. After all, they do not claim ownership!

Title insurance, the cost and the terms of which may vary considerably among different insurers, financial instrument performs excellent buyer protection. Suffice it to say that in the US, almost all compensatory real estate transactions (95%) are insured in this way. Is it expensive with us? Dispersion of tariffs is quite large: 0.15% - 1% of the purchase price for the first year of insurance. The second and subsequent years will always be cheaper, as reduced risk of detection of dangerous circumstances. In this case, the insurer may consider the real cost of real estate, and not one that is specified at time of transaction.

As a rule, all risks are insured for three years. But if you want the policy can be resumed. As with any process of insurance, it is important to choose a major insurance company, is not involved in a scandal with non-payment on its obligations.