BUYERS
When purchasing a home, it's essential to verify the seller's rightful ownership and ensure there are no unresolved issues that could impede the transfer of the title to you.
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Why is this important?
Problems with the title can impose limitations on property usage and potentially lead to financial losses. This is where title insurance becomes invaluable, and Karma Title is here to assist you. We conduct thorough title searches to confirm that your ownership is clear of any encumbrances. With a title insurance policy, your investment is safeguarded, reassuring you that your ownership remains unencumbered.
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The cost of title insurance is paid only once, with no renewal premiums or expiration dates. This protection endures for as long as you, or your successors, hold an interest in the property, ensuring long-term security.
SELLERS
Selling your house?
Karma Title Can help!
We will assist you in finding an experienced Closing Attorney and satisfy any liens. We promise a smooth closing, great communication, and amazing service.
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Whether you are listing your house for sale by owner or working with a real estate agent, we are here for you.
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Timely and Accurate Title Commitments
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Experienced and Knowledgeable
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Ability to Resolve Complex Issues
Karma Title will make the closing easy.
Contact us to get your transaction started.
What is Title Insurance And Why Do I Need It?
Title insurance is crucial when purchasing a home. While there are various insurances and third-party services to consider, many buyers overlook the importance of title insurance. This type of insurance protects both you and your mortgage lender from losses stemming from defects in the property's title. Such defects can range from improperly recorded documents to forgery, easements, or encroachments. Having solid title insurance is essential to safeguard yourself in case of such issues.
Furthermore, title insurance is not just important but required to protect your interest in the property. If someone were to claim ownership interest or if a defect were discovered, title insurance would shield you from any resulting losses. Without it, you could face significant financial liabilities, potentially losing hundreds of thousands of dollars and even risking the loss of your home.
who pays for title insurance and how much does it cost?
Title insurance is a one-time, up-front fee—not an ongoing expense. An owner’s policy is based on the home’s purchase price, while a lender’s policy is based on the loan amount. Both policies together usually cost about 0.5% to 1.0% of the home’s purchase price, or $1,500 to $3,000 on a $300,000 home, according to ALTA.
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In North and South Carolina, the price for title insurance is the same no matter which title insurance company you use. However, It is important to make sure you are using a reputable company with experienced underwriters. You can get an estimate of what title insurance costs in your area using the rate calculator on our home page.
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Who Pays For Title Insurance? The buyer pays for the lender’s title insurance policy as part of their closing costs. Either the buyer or seller can pay for the owner’s policy on behalf of the buyer. Local real estate custom often determines who pays. Buying an owner’s policy at the same time as a lender’s policy can reduce the cost of the owner’s policy through what’s called a “simultaneous issue charge.
What Does Title Insurance Cover ?
A title insurance policy covers underlying issues with a property’s title that might have been missed before you bought the home. Basically, it comes in handy if the public record search conducted by the titled company failed to catch any liens or ownership disputes.
These are some of the issues an owner’s title policy can protect you against:
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Property survey errors
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Boundary disputes
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Errors on the property deed
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Building code violations by a previous owner
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Conflicting wills
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Claims by an ex-spouse who didn’t sign off on the sale
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Forged documents
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Liens from contractors, taxing entities or previous lenders
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Encroachments
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Improperly recorded documents
What Does Title Insurance NOT Cover ?
Title insurance doesn’t protect homeowners against all possible infringements on their property rights. For example, it doesn’t protect you against title problems caused by your own actions, such as failing to pay the company that replaced your roof or failing to pay your property taxes. It also doesn’t protect against eminent domain, which is when a government seizes private property for an ostensibly public purpose.
In short, it doesn’t protect against issues newly created after you buy the property. It protects against issues that might have affected your decision to purchase the property had you known about them at the time.