Possessory Title Indemnity Insurance is a form of insurance that protects the owners of real estate against losses due to title defects. It is a type of title insurance that is typically purchased by a buyer of property and is designed to protect against losses caused by title defects that were unknown at the time of purchase. Possessory Title Indemnity Insurance can also be used to protect the seller of a property from claims that arise after the sale is completed.
Title defects can include any number of issues such as liens, encumbrances, boundary disputes, or other rights that someone else may have to the property. Because these issues may not be discovered until after the sale is complete, they can cause significant losses to the buyer or seller of the property. Possessory Title Indemnity Insurance is designed to provide protection against these types of losses.
Who Should Consider Purchasing Possessory Title Indemnity Insurance?
Possessory Title Indemnity Insurance is a good option for anyone who is buying or selling a property that does not have a clear title. This can include individuals who are buying a property from an estate, a foreclosure, or a short sale. It is also a good option for buyers or sellers of properties that have been in a family for a long time and have not had the title updated or verified.
How Does Possessory Title Indemnity Insurance Work?
Possessory Title Indemnity Insurance works by providing protection to the buyer or seller of a property in the event that a title defect is discovered after the sale is completed. The insurance policy will provide coverage for any losses that are incurred due to the title defect. This coverage can include the costs of litigation, court costs, and any other costs associated with the title defect.
In some cases, the insurance policy may also provide coverage for the costs of repairing the title defect. This can include the cost of researching the title defect, obtaining necessary documents, and filing the necessary paperwork with the local county recorder.
What Does Possessory Title Indemnity Insurance Cover?
Possessory Title Indemnity Insurance typically covers the costs of defending against a title defect, including court costs and attorney fees. The policy may also provide coverage for the costs of repairing the title defect, such as the costs of researching the title defect, obtaining necessary documents, and filing the necessary paperwork with the local county recorder.
In some cases, the policy may also cover the costs of any losses that are incurred due to the title defect. This can include losses due to the inability to use the property, loss of value due to the title defect, or other losses that may be incurred.
How Much Does Possessory Title Indemnity Insurance Cost?
The cost of Possessory Title Indemnity Insurance will vary depending on the type and amount of coverage that is purchased. Generally, the cost will range from a few hundred dollars to several thousand dollars depending on the size and complexity of the title defect and the coverage that is being purchased. The cost of the policy will also depend on the provider, as different insurers may have different rates and policies.
What Are the Benefits of Purchasing Possessory Title Indemnity Insurance?
The primary benefit of purchasing Possessory Title Indemnity Insurance is the peace of mind that comes with knowing that any losses due to title defects will be covered. This can provide a significant amount of protection for buyers and sellers of property, as the costs of defending against or repairing a title defect can be significant.
In addition, the policy can provide protection against losses that are not covered by other forms of insurance, such as the inability to use the property due to the title defect. This can provide financial protection in the event that a title defect is discovered after the sale is complete.
Where Can I Purchase Possessory Title Indemnity Insurance?
Possessory Title Indemnity Insurance can be purchased from a variety of different insurers. It is important to shop around to find the best policy for your needs, as different insurers may offer different coverage, rates, and policies. You can also contact your local real estate attorney or title company to inquire about their Possessory Title Indemnity Insurance policies.
Conclusion
Possessory Title Indemnity Insurance is a form of title insurance that is designed to protect the buyer or seller of a property against losses due to title defects. It can provide significant financial protection in the event that a title defect is discovered after the sale is completed.
The cost of Possessory Title Indemnity Insurance will vary depending on the amount and type of coverage that is purchased. It is important to shop around to find the best policy for your needs, as different insurers may offer different coverage and policies.
