Understanding Title Insurance When Buying Real Estate in New York
When buying real estate in New York, it is important to consider whether or not you need title insurance. Title insurance is a form of insurance that protects the buyer and lender from any losses that may arise from defects in the title of the property. In New York, title insurance is not required by law, but it is highly recommended.
Buyers and lenders typically purchase title insurance because it provides coverage against any claims involving the title of the property. For example, if the seller does not have clear title to the property, the title insurance will pay any losses from a lawsuit by someone who claims to have an ownership interest in the property. Additionally, title insurance will cover any liens or encumbrances that may be attached to the property.
It is essential to conduct a thorough title search before purchasing real estate in New York. A title search will reveal any potential issues with the title of the property, such as liens or encumbrances. If any issues are discovered, they can be addressed prior to closing. The title insurance company will do the title search and issue the insurance policy to protect against any potential future losses.
In New York, there are two types of title insurance: owner’s title insurance and lender’s title insurance. Owner’s title insurance protects the buyer from any losses that may arise from defects in the title of the property. Lender’s title insurance protects the lender from such losses.
When purchasing title insurance, it is important to understand the cost. In New York, the cost of title insurance is typically based on the purchase price of the property. The cost of title insurance is typically paid by the buyer at closing.
In conclusion, when buying real estate in New York, it is critical to consider purchasing title insurance. Although title insurance is not required by law, it is highly recommended.
If you are buying or selling real estate and have questions, contact me for a consultation @ 516-570-4016.