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What is Real Estate Title Insurance in New Jersey?

When refinancing your home or trying to buy a new home, the term title insurance comes up at some point. Lots of people don't know what title insurance is, but they buy it every day. In short, title insurance is a policy that limits the risk to buyers, owners, and lenders from real estate transactions. You can contact #1 Title Insurance Company in NJ Clear Skies Title Agency.

Insurance does not protect all three financially in every transaction, but by eliminating the risk of liability, property insurance has a positive effect on everyone.

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In the past, when someone wanted to buy a property, they would contact a lawyer to inspect the property. The attorney will go to the courthouse and download all the necessary records to ensure the property is free from mortgages, tax withholding, city detention, and court orders. 

He ensures that the person selling the property is the actual owner of the record and also checks the chain of ownership to ensure that the way the owner acquired the property is not a claim by another person or group. 

The policies of creditors and owners are similar. When a person is refinanced, title insurance is taken out at the borrower's expense to assure the new bank that once their mortgage is completed, it will be at the forefront of foreclosures in the courtroom. 

Old mortgages must be repaid as soon as they are paid off. And then the new mortgage will go up first in the clerk's office. This is the main function of creditor property insurance in refinancing.