Protect Title Certificate For Free

However, in this case, they use it to obtain the title of your property. Once they have done that, they can then change the name on the property title to their own. This allows them to take out loans that are secured against your home or even sell it.

Key Takeaways. A defective title is a title that is impaired with a lien, mortgage, judgment, or another claim. Defective titles are considered unmarketable, so the asset in question cannot be transferred or sold legally. Any encumbrances on a defective title must be cleared before the owner can sell the asset.

Lender's Policy. If you've ever mortgaged a home, chances are you were required to purchase a title insurance policy. ... Owner's Policy. However, as a buyer, you also want to protect your investment -- and the ownership rights that come with it. ... Customs. ... Refinance Transactions.

Make Sure You Have Title Insurance It protects against any claims or liens made against the property. There are two types of title insurance: lender's and owner's. Lender's title insurance is required by your mortgage company and assures them the title is cleared for sale.

A title deed of land is a legal document for evidencing the sale and transfer of land ownership in the buyer's favour. It contains the details of the land owner, the extent of land he/she owns, and how the land owner obtained ownership over the land.

General warranty deeds: A general warranty deed provides the most protection to the buyer but gives the grantor the highest degree of liability. The grantor of a general warranty deed fully warrants good, clear title to the property. This type of deed is used in most real estate deed transfers.

The title and the property cannot be legally transferred until the title defect is resolved. The titleholder must take care of all and any issues. For example, if there are tax liens on the property, the homeowner must pay off outstanding taxes before going through with the sale.