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Do You Need Title Insurance


									                                 Southern Capital Title Company, LLC

                            Do You Need Title Insurance?
                            Title Insurance is often heard during the
                            process of locating a property, making an offer     prohibit the insured from conveying title that is free
                            and preparing for closing. If this is your first    and clear. Usually, any title defects can be cleared
                            home, you might wonder “Why do I need title         up prior to closing on the property. If a problem
                            insurance?” The answer is simple—to protect         arises after the policy has been issued, the title
                            your investment.                                    company will cover any losses you incur from a
                                                                                valid claim.
                            Our homes are usually the largest investment
                            we will make. In order to insure that your          How Much is the Premium?
                            investment is protected, we offer title
                                                                                There are two types of policies that title companies
                                                                                issue: Lender’s Policy of Title Insurance and
                            What Is Title Insurance?                            Owner’s Policy of Title Insurance.
                            Title Insurance is a policy issued by a title       The cost for a Lender’s Policy is $3.00 per
                            company to either the lender to insure their        thousand dollars of coverage. (e.g. $100,000.00
                            mortgage interest or a borrower to insure           mortgage— $3.00 x 100,000 = $300.00.)
                            their ownership interest. Title insurance           The cost for an Owner’s Policy is $4.00 per
                            protects against losses that occur when title to    thousand dollars of coverage (e.g. $100,000.00
                            a property is not free and clear of defects (e.g.   purchase price—$4.00 x $100,000 = $400.00.)
                            liens, encumbrances and defects that were
                                                                                If an Owner’s Policy is purchased at closing,
                            unknown when the title policy was issued).
                                                                                the title company can issue the lender’s pol-
                            The terms of the policy define what risks are
                                                                                icy for a flat fee of $50.00. (e.g. $100,000.00
                            covered and what risks are excluded from
                                                                                purchase price—Owner’s Policy Amount: $400.00,
                            coverage. The title insurer will reimburse you
                                                                                $100,000.00 mortgage—Lender’s Policy Amount:
                            for losses that are covered, up to the face
                                                                                $50.00. The total for both policies issued
                            amount of the policy, and any related legal
                                                                                simultaneously is $450.00. This is a savings of
                            expenses. This protection is effective as of the
                                                                                $350.00 if purchased at the same time.)
Southern Capital            issue date of the policy and covers defects
                            arising prior to your ownership. Two types of       The cost of the coverage is usually outlined in the
Title Company
                            title insurance policies for real property are      contract for the purchase of the property. The fees
215 Katherine Drive         common: a lender's policy and an owner's            associated with the title insurance policy are
Flowood, MS 39232           policy.                                             minimal compared to the peace of mind the policies
601-933-0370 (p)                                                                provide.
                            What is the process?
601-933-0374 (f)                                                                If you would like more information on Owner’s
                            Prior to issuing a title insurance policy, title
                                                                                Title Insurance or the importance of having the
                            companies examine the title of the property.
                                                                                policy, please feel free to contact our office and one
                            This includes a public search on liens, judg-
                                                                                of our experienced escrow officers will assist you.
                            ments, and other title defects that would

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