In fact, no matter if you have been in business for quite some time, or you are new to the real estate industry. The risks you face daily, from errors in closing costs and payoff amounts to failing to meet client expectations. Even if you are exempt from all claims, the fees incurred on defense, time away from your business and the added stress of dealing with the situation can prove costly.
Without the right coverage, real estate agents can line their professional and financial future. Protects against title agents errors and omission escrow agents, closing cost agents, title finders, and title agents' omissions and lawsuits resulting from errors and fraudulent wire activities.
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This insurance covers all costs suffered as a result of an emerging lawsuit claiming alleged errors in the title documentation process, including title searches and escrow. When an error or violation occurs during this trade, the agent is held accountable for damages incurred resulting from the error or violation.
At times the actual estate process may get damaged because of a faulty or unmarketable name, also referred to as a title defect, meaning there's an omission, mistake, or other complication linked to the possession of this house which makes it unsuitable available to a valid buyer.
Typically, as part of the settlement process under a contract of title, the buyer will pay the title company or attorney to search the title to the property. To ensure the seller has a valid and marketable title to transfer without title defects to protect the buyer's right to the property.