The A to Z of Title Insurance in NJ

Title Insurance Is a Valuable Type Of Insurance That Safeguards Property Owners and Lenders Against Any Past Actions That Could Potentially Invalidate the Title of the Property

When it comes to buying real estate in New Jersey, there are many requirements and fees involved in closing the deal, some of which are difficult to ascertain without the support of a real estate attorney. Our team at Chamlin, Uliano & Walsh is highly skilled and experienced in all matters of real estate law, including elements that can mean the difference between retaining your property and having its title of ownership challenged. Title insurance prevents this type of situation, and we’re here to make sure you and your lender are covered.

Importance of a Title Insurance in New Jersey

Title insurance is a unique coverage that protects a property owner and their mortgage lender from past actions that place the validity of the property’s title in jeopardy. There are many cases in which a property title’s validity may come into question. For example, if a title search or future challenge finds that a previous title owner defaulted on their mortgage, did not resolve an outstanding lien, didn’t pay property taxes, or the property rightfully belonged to a prior spouse as a marital asset, the validity of the sale to a new owner is nullified. This can be a devastating blow to a new owner, and to prevent such legal ownership challenges, title insurance is key.

Shielding Ownership Through Title Insurance

Title insurance creates a buffer protecting a buyer and their mortgage lender from challenges to legal ownership. If such a challenge comes up, title insurance will either take care of the issue or reimburse the buyer.

Lender’s Requirement of Title Insurance for Buyers

Technically, title insurance is not mandatory under New Jersey law. However, in addition to title insurance is highly recommended, the lender will often require that the buyer purchase title insurance protecting their investment as a primary lien.

Variables Considered to Determine the Cost of Title Insurance

Usually, title insurance costs around one percent of the property’s purchase value. This varies, however, based on property location and the total amount of your property loan.

Which Party is Responsible for the Payment?

The property buyer pays for title insurance in New Jersey. The fee is often paid at closing.

Multiple Options to Obtain Title Insurance in NJ

There are many title providers in New Jersey offering title insurance at a relatively nominal premium. The premium is added to the closing costs and represents a fraction of the property cost while also meaning that the sale will be protected in the event of a past issue challenging the viability of your ownership.

Do I Need to Renew My Title Insurance?

Title insurance endures for the entirety of your ownership of the property or that of your heirs. As such, there is no need to renew your title insurance. However, should you refinance your property with your lender, you may need to buy a new title insurance policy for the lender.

Issues Not Covered in Title Insurance in NJ

Title insurance only covers future ownership issues that could arise due to prior invalidity of the title that went undiscovered. As such, other issues for which a property owner often purchases insurance are not covered by title insurance, such as flood, fire, or other property loss. These insurance policies are purchased additionally.

Contact Our West Long Branch Real Estate Attorneys for Questions about Title Insurance in Your Real Estate Transaction

A real estate attorney guiding you through the complex process of purchasing your home can help you select a reputable title insurance provider. Additionally, in the case that your rights to ownership are challenged after you’ve closed on the home, your real estate attorney will help you file a claim with your insurance provider to begin the process of clearing all blocks to the title.

At Chamlin, Uliano & Walsh, our team of qualified real estate attorneys is dedicated to helping families in Red Bank, Middletown, Holmdel, Wall, Belmar, Howell, Long Branch, Hazlet, and other Monmouth County, NJ communities find their perfect home and ensuring that all legal elements are fully addressed. If you are looking to purchase a property, or you’ve had your ownership questioned due to past challenges affecting the viability of your title, contact us today at 732-440-3950 to learn how we can help with the legal aspects of your title insurance issues in a real estate transaction.