Title Insurance: What You Should Know

WU iteTet —_——_— Title Insurance: What You Should Know (NAPSA)—Here are some facts and fallacies about title insurance that will surprise many homebuyers. Myth: Title-related charges make up a substantial portion of closing costs and are a major obstacle for buyers of moderately priced homes. Reality: Title insurance and other title-related charges make up a modest percentage of total closing costs when compared to lender andrealty agent fees. Myth: Lender’s title insurance protects the homebuyer. Reality: The interests of the lender and owner are often substantially different. The lender’s policy is written in the amount of the loan. If there were a total failure of title, the lender would be covered for the full amountof its investment—while the buyer would have nocoverageatall. Owner’s title insurance will protect the purchaserif a claim is made against the title. Owner’s title insurance will also pay any legal fees in defendingtheclaim. Myth: High on thelist of title insurance myths is one that says title insurancelosses arelow. Reality: Thereality is quite different. In 2002 and 2008, title insurers paid $582 million and $661 million in claims, respectively. To learn more, visit the American Land Title Association Web site at www.alta.org.