Buying a home is an exciting time for most people, but it can also be confusing and full of unfamiliar terms. Buying a home seems endless, so here we focus on some of the most commonly used terms that relate specifically to buying property insurance.
Title insurance is the simplest form, it is damage prevention insurance that protects against legal defects that arose prior to purchase. Two policies are usually issued. An "owner's policy" covers the homeowner, and a "lender's policy," sometimes called a mortgage insurance policy, covers the mortgage lender. You can contact the best title insurance agency in New Jersey via www.clearskiestitle.com.
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You must purchase your policy from a licensed agent. Often your bank or mortgage lender will recommend a property insurance agent, but as a buyer, you have a choice about which company to use.
“ALTA” is a term you will often hear when buying property insurance. ALTA is the American Land Ownership Association; a leading professional association of property insurance companies. The ALTA policy is widely available in the United States and is preferred by many lenders. ALTA Residential and ALTA Homeowner policies are the two most commonly used policies in residential real estate transactions.
One of the main tasks of a real estate agent is a title search, which means a thorough examination of public records to ensure that the property is being sold legally. Once this is done, you will get a report about the title. The report contains search results for titles and you may come across terms you are not familiar with.