Q: Why do I need title insurance?
A: Title insurance assures home buyers and their mortgage lenders that no individuals or government entities have any right, claim, lien, or legal encumbrance to your property. Your home is your biggest investment. Title insurance protects that investment.
Q: What protections do I get by having Guardian Title Insurance?
A: Guardian researches the history of the title to your property to protect you from various scenarios. We’ll make sure there aren’t any undisclosed prior mortgages, forged documents of ownership, deeds signed by mistake or under duress or old tax liens that were never settled. Guardian Title Insurance protects your asset from seizure by researching your property’s title history and insuring against any risks associated with your purchase.
Q: What costs are associated with purchasing Guardian Title Insurance?
A: Unlike most other forms of insurance, Guardian Title Insurance requires a simple one-time fee and the coverage for your property title will never expire. Costs range, but the flat fee is usually $300 to $400 per title, based upon the time of closing and the location selected.
Q: Why should I purchase title insurance when refinancing a home I already own?
A: When you refinance your home, a separate policy is required by the lender to insure the validity of your mortgage when it is made. Your mortgage is valid while you own the property, but your original title insurance does not insure the new mortgage created by refinancing. Title insurance will provide protection against events that may have occurred after your initial purchase of the property.
Q: How does Guardian Settlement Agents determine its closing fees?
A: Title Insurance is based on the purchase price of your property. The Rate is set by the New Jersey Insurance Commission, and all title insurance companies are regulated by the Commission. The premium paid for your title insurance generally represents less than 1 percent of the purchase price of your home or less that 10 percent of your total closing costs.
Even though the title company often hosts the closing of the transaction, the title company only receives a small portion of the total closing fees, but promises to protect your entire investment should the legality of your title be challenged.