Buying a home is an exciting time for most people, but it can also be confusing and full of foreign terminology. A list of specific terms related to the purchase of real estate is seemingly endless, so here we will focus on some of the most common terms used specifically related to the purchase of title insurance. You can search more information about title insurance agency in NJ via http://www.clearskiestitle.com.
Image Source: Google
Basics: What is Title Insurance?
To begin, let's define the title of the insurance itself. It is a loss-prevention insurance policy that protects against legal defects in the title that has occurred before purchase.
Other Terms to Know
"ALTA" is a term you will hear quite a bit when purchase title insurance. ALTA is the American Land Title Association; the leading trade association of title insurance.
ALTA policy is widely used throughout the United States and is preferred by many lenders. The ALTA Residential and homeowners policies are two policies are most often used in residential property transactions.
Terms of Title Reports
One of the main tasks of the agency heading to Title Search, which is a thorough examination of public records to make sure the property, is legally available for sale. Once this is completed, you will receive the Title Report. This report will contain the title of the search results and you may find a term that you are unfamiliar with.
A Abstract or Title, for example, only documents that show the history of the complete ownership of a piece of property. It will include a list of all property owners past, mortgages and liens.