Showing Title By Abstract Or Title Policy,
Alteration of abstract to title policy
Title insurance in the real estate industry is an age old concept. But it was originated from abstract policy. Abstract is nothing but the summary of information regarding the property’s ownership history. They are not in use today but few people use it to the day only for extraction of information. It requires a man who produces the records to handle all the records and not a lawyer which is where the flaw presides. The accuracy of the records is not certain and that’s the reason the lenders look for more security. And this is how the title policy gained popularity.
Title insurance is of utmost importance for the commercial property buyers and it is advisable for them to know about it thoroughly. It protects the buyers and lenders from obstructions in the title of the property and non disclosed information, if any, about the same. Here’s an example: a corporation signs a contract to acquire a commercial estate property from a third party. On the day of moving in, another party barges in with the ownership papers, claiming that it had bought the same property earlier. In this case, if the corporation had filled for a title policy initially, it wouldn’t have to face this fraud.
If a problem arises regarding the title of an estate, the policy owner shall file a claim. After that the insurance company will review and investigate the facts mentioned. Action will be taken upon the same after severe scrutiny.
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