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| Title Insurance Coverage |
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| Depending on the title company, consumers can choose among a variety of options, but the top three choices are Owners, Lender's and Extended Coverage. |
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- Basic Owner's Title Policy Coverage:
- Clear title to the property.
- Incorrect signatures on documents.
- Forgery, fraud.
- Defective recordation.
- Restrictive covenants.
- Encumbrances or judgments.
- Basic Lender's Title Policy Coverage:
- Mechanic's liens and unrecorded liens.
- Unrecorded easements and access rights.
- Defects and other unrecorded documents.
- Extended Owner's Coverage:
- Building permit violations from previous owners.
- Subdivision maps.
- Covenant violations from previous owners.
- Living trusts.
- Structure damage from mineral extractions.
- Variety of encroachments and forgeries after title insurance is issued.
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| Who Pays For Title Policy Insurance? |
- See C-11 of the Hawaii Purchase Contract for customary practices.
- It is also negotiable in the purchase offer.
- Typically, the buyer pays for the lender's coverage.
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| How Long Are Title Policies Good For? |
| Forever, theoretically. If you are planning to resell the property within a couple years, ask your title company about "binder" coverage. Most companies will sell you a binder policy for 10% more. A binder is good for two years, often can be extended beyond that time, and the fee charged for the new buyer's policy will be the difference between what you bought the property for and the price at which it sold. In other words, you will get a credit for the amount of coverage you purchased under your own Owner's Title policy. |
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| How Often Are Title Policy Insurance Premiums Paid? |
| Once. The fee is due when you buy. You will never pay it again. Title policy insurance is the best insurance policy you can ever buy. |
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