Real estate transactions is a way of buying and selling real property. It typically means the practice of buying, selling, mortgaging and exchanging land, buildings or housing developments with payment being made in installments over time with interest. Title insurance
When you sell someone your house but they don’t give you all of the cash at once, what you’ve done is become involved in a real estate transaction. The same goes for your house when it’s time to give the title back to the bank after paying off your mortgage. Your home is part of many transactions over its life (every time someone takes out a loan on it, they are making a transaction). As with any transaction involving a good of value, a real estate transaction needs some kind of trust to make sure that both parties fulfill their part of the deal.
In the United States, Real Estate is bought and sold by Real Estate Agents who offer their expertise on Real estate deals. In addition, many Real estate agents also offer Title Insurance as an additional service .
Title insurance is an insurance policy that protects your ownership interest under a title against loss by reason of certain title defects. Almost every state requires lenders to purchase the owner’s policy when they make real estate loans, but it can also be purchased by private individuals for their own protection and peace of mind. When you buy a house, your lender will insist, as a condition of the purchase, that you buy a new title insurance policy. Lenders have been doing this for decades because they know from experience that title defects are very common and can be costly to resolve.
In its most basic form, title insurance protects you against losses resulting from issues like fraud or forgery, clouded titles, or court judgments that could prevent you from selling the property. The policies are based on market conditions, so if prices are down in your area, you may have to pay less for coverage than someone who’s buying at a peak market price.
Title insurance is required by lenders when they make mortgage loans or provide other financing secured by real estate. Each policy is written for a specific property, and coverage cannot be transferred if the insured property changes hands.