Title Insurance Georgia: What Prospective Property Owners Need to Know

 

Speak with a trusted real estate attorney in Cherokee County, Georgia.

What is Title Insurance Georgia?

If unforeseen issues arise, purchasing title insurance Georgia can help protect your real estate investment. Learn more in this comprehensive overview.

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Author: Stan Faulkner, Founder, Faulkner Law, LLC

Mr. Faulkner is an experienced counselor and litigator with 15 years of experience, having held bar licenses in four states (Mo, Il, Ct and Ga). Stan Faulkner uses this experience and focuses his skills in the pursuit of assisting individuals in probate (trust and estate) matters, guardianships and conservatorships, estate planning, business disputes and contract disputes. Published on November 17, 2021.

Title insurance is designed to protect the owner (or lender) of real estate in the event of unforeseen title defects that may cause financial loss. Title insurance is often required as a condition for purchasing real estate.

Title insurance is also issued to protect lenders acquiring or taking a deed of trust on the property. Title insurance sales typically result in sales commissions, which can increase the sales price of your property and thus your mortgage payment.

As a buyer, whether or not to purchase title insurance is an important decision based solely on one’s preferences. It is essential to review title insurance policies to make an informed decision.

If you are planning to purchase title insurance in Georgia, seek formal legal advice from a real estate attorney near you who can help you determine whether or not you need title insurance, and if so, which policy best suits your needs.

Like the ones you will find at Faulkner Law Firm in Georgia, title insurance lawyers can help you determine if your closing costs require title insurance. Our real estate attorney is experienced in title examination, title search, title claims, and title defect litigation. We can help you determine whether or not title insurance is right for you.

We will review the property’s title to see how it’s holding up and if the seller can transfer a good title to you in line with the contract. The seller’s mandate is to execute and deliver a deed to the buyer at closing, giving the buyer ownership of the property (usually a limited or general warranty deed).

Contact us today for an attorney-client relationship to schedule a closing, and we will walk you through the entire closing process!

Types of Title Insurance in Georgia

There are two types of title insurance:

Lender’s Title Insurance

The lender’s title insurance covers the lender if failures in closing disclosure occur, such as inaccuracies in the information presented at closing. It also ensures that the lender will get a lawful first lien on the property.

Owner’s Title Insurance

The owner’s insurance protects the buyer against problems that arise after the transaction is completed. Human mistakes, unpaid debts, fraudulent paperwork, unreported or missing heirs, and erroneous legal descriptions are all possibilities. Only an owner’s title insurance policies will cover personal losses, such as legal fees, in the event of a dispute after the sale.

Georgia Title Insurance

If you’re dealing with a home or commercial property, you should understand how the lender’s title insurance policy works. This sort of insurance protects your lender from issues with your property’s title.

You may have to consider purchasing owner’s title insurance to protect yourself. The title insurance company will defend any legal claims against the property owner.

The lender’s title insurance assures that the purchaser is the only landowner. The property is clear of all flaws, such as liens, encumbrances, or a lack of right of entry to the property.

The extent of coverage varies per insurance. Many title companies offer basic and enhanced coverage, with the latter covering more difficult-to-detect title concerns. The coverage requirements of a customer will differ according to the property’s history.

Georgia Title Insurance Calculator

Georgia offers several different pricing slabs depending on the kind of coverage. The ALTA policy provides standard coverage, but the Eagle Policy provides enhanced coverage at a higher cost than the ALTA Policy. The costs for the ALTA Policy will be discussed here.

How to Calculate Title Insurance in Georgia

 

In Georgia, the policy’s minimum price is $200, whereas the simultaneous issuing of the lender’s policy and the ALTA Owner’s title insurance policy costs $150. Your local real estate attorney can help you determine how to calculate title insurance in Georgia as it applies to your unique situation.

Georgia Title Insurance Requirements

 

In a residential or commercial property transaction, various events might result in losses for the owner or lender. Here are a few examples:

  • Public records mistakes
  • Tax liens
  • Liens from professionals who have not been paid for services performed on the home
  • An unresolved ownership dispute
  • A nefarious mortgage
  • Incorrect marital status of the owner or invalid/contested divorces
  • Property line disagreements
  • Encroachments by structures such as driveways or fences
  • Outright deception, such as forged documents
  • Fraudulent probate of wills and estates or formerly undisclosed heirs who have claims to the property

These and other damages can be covered by title insurance. This provides invaluable protection to both buyers and lenders.

How Much Does Title Insurance Cost?

According to representatives of the American Land Title Association, when you buy a lender’s and owner’s policy together, the total cost of a title insurance policy is about 0.5 percent to 1 percent of the purchase price.

December 2019 statistics from the National Association of Realtors revealed that the fee range amounts to a premium of $1,372.50 to $2,745 for a median-priced house of $274,500. Although title insurance charges vary by state, the larger your purchase price, the more title insurance you’ll likely pay.

The cost of a new lender’s title policy for a refinancing loan is closer to 0.5 percent of the loan principal.

If you need a lawyer, a knowledgeable estate planning attorney in Marietta will work alongside you and your closing team to deliver the closing experience that you desire—whether you’re buying or selling a home, a shareholder, a resettlement company, a mortgage professional, a real estate professional, or a financial institution.

Contact us at (770) 685-9501 for a free consultation on your case and learn more about title insurances in Georgia.

Requirements to Obtain a Georgia Title Insurance License

 

To sit for the Georgia insurance license test, you must first finish a Georgia Office of Insurance and Safety Fire Commissioner-approved pre-licensing insurance course. You will get a Certificate of Course Completion if you pass the pre-licensing course final test.

The many insurance concepts, terminology, insurance laws, and agent regulations stated on the Georgia Examination Content Outline are covered in the Georgia pre-licensing insurance courses. Instructional videos, interactive visuals, practice examinations, and student assistance are all included in the courses, which are presented clearly and concisely.

 

Who Pays Title Insurance in Georgia?

 

The buyer pays for both the owner’s and the lender’s policies in most cases. However, since there are no official mandates, the title insurance cost in Georgia can be negotiated between the parties. This means that the lender can decide to pay for the title insurance. Most lenders will want to avoid paying this, but pursuing negotiation can still be a wise move.

 

Contact an Experienced Closing Attorney for Help

 

Learn more about title insurance in Georgia by contacting our law office at (770) 685-9501 today!

Our law firm operates in Marietta and the Metro Atlanta area and deals with estate planning, business law, real estate disputes, contracts, and agreements.

Schedule your free consultation with a closing attorney today, and let’s put your real estate purchase on the right track!

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