New Jersey home buyers often ask about owner’s title insurance, what it is, and whether they need it. Lender’s title insurance is required by the lender, however, owner’s title insurance is an optional charge. New Jersey buyers should review the facts and decide for themselves whether they would like to purchase it. The following are New Jersey owner’s title insurance important details.
Don’t Mistaken a Title Search for Insurance
Before closing, a title search is routinely performed by the closing attorney. This identifies that no other party has a right to the New Jersey home and that the title is clear to be transferred to a new buyer. The title search is not full proof and may not catch issues with the title. Owner’s title insurance will protect you against title defects and the legal fees associated with defending your rights to title on the New Jersey home.
Owner’s Title Insurance Applicable Time Frame
Owner’s title insurance is a single charge at closing that will cover you for the lifetime that you remain owner of the New Jersey property. You can purchase it after closing, but it is typically less expensive when purchased at closing. The amount is based on the price of the property.
New Jersey Owner’s Title Insurance Important Details and Coverage
Owner’s title insurance general coverage includes…
- Fraud in connection with the execution of documents.
- Pressure on a seller or executor (of a will).
- Impersonation by those pretending to be owners of a New Jersey property.
- Incorrect marital status of a grantor.
- Mental Incapacity of grantors.
- Participation by a minor.
- Non-delivery of deeds.
- Unresolved claims not noted on the records.
- Mis-indexing at Registry of Deeds.
- Clerical errors in recording legal paperwork.
- Delivery of deeds proceeding the death of a grantor.
- Transfers executed under false powers of attorney.
Some policies additionally include…
- undisclosed heirs.
- Wills not properly probated.
- Incorrect interpretation of trusts.
- Additional heirs after the date of a will.
- Inadequate New Jersey land surveys.
- Inaccurate legal descriptions.
- Confusion due to similar names.
The above facts are just general information. Consult a local title company for accurate New Jersey owner’s title insurance important details and pricing, as they may vary based on the owner’s title insurance provider.