Do I Need Title Insurance, Even If I Am Paying Cash?
Title insurance is an insurance policy that is required by the lender when taking a mortgage. The insurance policy is meant to benefit the lender in several ways. The lender requires the insurance policy to gain knowledge and understanding about the property in question. Information gathered include the ownership of the property and whether any charge has been placed before by any other lender. The information is meant to protect the lender in the event that there may be any issues with the property. Therefore, it is imperative to take a title insurance policy when taking a mortgage using a loan rather than cash. However, when paying for the mortgage using cash, you can decide to leave out the policy or take it since it is optional and the beneficiary is yourself rather than a third party.