The very first thing we need to know is what is title insurance, what does it insure and what policy is best for you.
Unlike most insurance policies with a Homeowners policy you are buying insurance to protect you for what may of happened in the past! Most insurance policies, like auto insurance, life insurance cover you for what may happen in the future. We can’t confuse a title policy for a home warranty policy. Remember your home warranty policy protects you from future events.
Is title insurance for a St George utah buyer mandatory? No. Not if you are using your own money(cash purchase) to purchase the home. If you are getting a loan it is mandatory.
Here are some key points:
- Lender’s Policy: If you plan to finance a home through, bank or mortgage lender, they will require you to purchase a lender’s title insurance policy. This policy protects the lender’s interest in the property up to the loan amount, but it does not protect the buyer.
- Owner’s Policy: An owner’s title insurance policy protects you, the buyer, from potential title defects that existed before you purchased the property but were not known at the time of purchase (e.g., forged deeds, undisclosed liens, or unknown heirs). While optional, I strongly advise getting one to safeguard your investment. In most Utah transactions, the seller pays for the buyer’s owner’s policy. You will want a ALTA Policy. There may an exception if you are purchasing a brand new home in a large subdivision directly from the developer. An ALTA or enhanced policy covers a wider range of post-policy risks. The cost is minimal for all the extra protection.
- Cash Purchases: If you are buying a property with cash, title insurance is not required by law or a lender. However, even with a thorough title search, hidden issues, making the owner’s policy a worthwhile protection for your investment.
Call, email or sign up for a FREE ST GEORGE MLS SEARCH. My team of experts can answer detailed questions about Utah homeowner’s title insurance.