Title Insurance Guide for Westland Homebuyers
What Is Title Insurance?
Title insurance protects Westland, Michigan homebuyers from hidden claims against their property that could surface after closing. Sonic Title, a leading title company serving Metro Detroit, has seen firsthand how this protection saves homeowners from devastating financial losses. Title insurance is a one-time payment policy that safeguards against potential issues such as liens, encumbrances, or fraud that may affect your property ownership.
A question we hear at Sonic Title every day is: 'Do I really need title insurance?' The answer is a resounding yes. This coverage ensures that any title defects, which can be costly and time-consuming to resolve, are handled by the insurance provider.
Owner's Policy vs Lender's Policy
In the realm of title insurance, there are two primary types: the owner's policy and the lender's policy. The owner's policy protects the buyer's interest in the property, while the lender's policy protects the lender's financial interest. Our team at Sonic Title always recommends purchasing an owner's policy to ensure complete protection of your investment.
The lender's policy is typically required by your mortgage lender and only covers the amount of the mortgage. The owner's policy, on the other hand, covers the full purchase price and remains in effect as long as you or your heirs have an interest in the property.
What Title Insurance Actually Covers
Title insurance covers a range of potential issues, including:
- Errors in public records
- Unknown liens
- Missing heirs
- Forgery and fraud
- Boundary disputes
Sonic Title has protected Westland homeowners from scenarios such as undiscovered liens from previous owners and forged documents that could have jeopardized their ownership.
What Title Insurance Does NOT Cover
While title insurance provides extensive protection, it does not cover certain issues. It doesn't cover defects that arise after the policy's issue date, zoning issues, or boundary discrepancies that a survey could have revealed. Being transparent about these limitations helps build trust with our clients.
The title search is a critical step in the home buying process. It involves examining public records to confirm the property's legal ownership and identify any claims or liens. Sonic Title prides itself on conducting thorough searches, often catching issues that others might miss, ensuring a smooth transaction for Westland homebuyers.
Common Michigan Title Issues
Michigan presents unique title challenges, such as issues stemming from the state's rich history of land use and ownership changes. Common problems include unresolved liens and boundary disputes. Sonic Title's expertise in handling these state-specific challenges ensures that your property purchase is secure.
How Much Does Title Insurance Cost in Westland?
The cost of title insurance in Westland generally varies by neighborhood and is based on the property's purchase price. On average, you can expect to pay around 0.5% to 1% of the purchase price. The peace of mind that comes with knowing your investment is protected makes title insurance a valuable proposition.
KEY TAKEAWAYS:
- Title insurance is essential for protecting Westland homebuyers from hidden property claims.
- Sonic Title recommends both owner's and lender's policies for comprehensive protection.
- Title insurance covers errors, unknown liens, and fraud but excludes post-policy issues.
- Sonic Title conducts thorough searches to catch issues others miss, ensuring a smooth closing.
- Westland title insurance costs around 0.5% to 1% of the purchase price, varying by neighborhood.
Whether you're purchasing your first home or adding to your portfolio, Sonic Title is ready to guide you through a swift and secure closing process. Call us at (313) 251-5145 for more information or to schedule a consultation.
Fair Housing Notice: We are committed to the letter and spirit of the Fair Housing Act.
We do not discriminate on the basis of race, color, religion, national origin, sex, familial status, or disability.
Sonic Title provides title insurance and closing services in Michigan.
Title insurance policies are underwritten by licensed underwriters.