Title Insurance in Missouri
Before closing on possibly the biggest investment of your life, you can guarantee relief from unexpected financial burdens with property title insurance. Without it, you may take on hidden title defects that threaten your right to full ownership of the property.
Title insurance in Missouri protects you and your financial interests for as long as you own the property. Hillsboro Title Company will help you through every step of the closing process to ensure your protection.
What is title insurance?
As you prepare for the purchase of a new property, you want to be sure the title is clear of any issues affecting your right to ownership. During the closing process, you can hire a title insurance company to search public records for problems in your property’s chain of title. Even after thorough research, however, there may be hidden title defects due to fraud, forgeries, or filing errors.
An owner’s title insurance policy covers these unknown title defects and includes:
- Debt owed for previous work on the home.
- Illegal deed made with misinformation such as incorrect marital status.
- Unknown easements that give third parties ownership to a portion of the land.
- Unpaid mortgage bill resulting in a lien on the property that could result in repossession.
- Errors in public records due to negligence or incomplete documentation.
- Bankruptcy filed by previous owner.
- Undiscovered will or trust that includes an heir to the property.
A one-time purchase of title insurance will protect you from any financial losses or ownership issues that could arise in the future.
Who pays for title insurance in Missouri?
In the state of Missouri, it is decided who is responsible for paying for title insurance within the purchase contract. If the buyer of the property is responsible for paying for title insurance, they have the right to select a title company of their choice.
It is recommended that property buyers purchase both owner’s and lender’s title insurance policies to protect the financial interests of all involved parties. Mortgage loan providers typically require the borrower to purchase a lender’s policy to insure the lender’s lien on the property is first in line for payment should a claim arise that affects the loan. The amount of the lender’s coverage will match the full amount of the loan. The buyer then has the option to acquire an owner’s policy to cover the remaining purchase price of the property.
The one-time cost of a title insurance policy depends on the purchase price of the property and the title insurance provider.
Do I need title insurance?
If you need a loan to purchase a home or if you are refinancing, the lender will likely require you to purchase a lender’s policy to cover the full amount of the loan. Although it is not a requirement to purchase owner’s title insurance in Missouri, by not doing so you risk personally taking on the financial burden of any unpaid taxes, claims against the property or other hidden title defects.
Your title insurance policy will last for as long as you, the property buyer, or your heirs own the property. You need title insurance if you want to have peace of mind after closing on your new home.
How do I get title insurance in Missouri?
Property buyers are often given recommendations for title companies by their real estate agent or attorney. You have the right to choose a title insurance company for yourself.
When you choose Hillsboro Title Company you are selecting expert insurance services. As an independent third party, we will make sure your financial interests are safe and protected. Learn more about our title insurance policy process, or place an order for title insurance on our website.