Cortes & Hay Releases Guide on Owner's vs Lender's Title Insurance for NJ Buyers

FOR IMMEDIATE RELEASE

Cortes & Hay, a title insurance agency with over five decades of experience serving New Jersey’s residential and commercial real estate markets, announced the release of a guide that helps those involved with a real estate transaction understand the difference between - and importance of - owner’s and lender’s title insurance.

“The real estate transaction process is chock-full of terms that may be unfamiliar to buyers, and over the years, we’ve seen that the presence of both ‘owner’s’ and ‘lender’s’ title insurance in the closing documents can cause added confusion and questions,” said David Hay, owner of Cortes & Hay. “This publication, drawn from the experts at Cortes & Hay, outlines what future property owners should know about both owner’s and lender’s title insurance - and the importance of securing the right title insurance to safeguard their purchase.”

Available at cortesandhay.com, the new publication covers several essential points people should know about owner’s and lender’s title insurance. These include:

Point #1: Lender’s Title Insurance Protects the Mortgage Lender from Title Errors

A lender’s title insurance policy (also known as a loan policy or “mortgagee policy”) is required by almost every mortgage lender as part of the loan. The lender’s policy protects the mortgage issuer against any title issues that may arise during the process. Those could be anything from surprise heirs and errors in public record to forgeries, unrevealed encumbrances, or undisclosed liens or debts. In New Jersey, most lenders require the buyer to pay for the lender’s title insurance, which is generally lumped in with closing costs.

The key thing that buyers need to know about lender’s title insurance is that it offers the buyer no protection. Lender’s title insurance, as its name suggests, provides protection only for the lender, not the buyer. That’s where the owner’s title insurance comes in.

Point #2: Owner’s Title Insurance Provides the Buyer Protection From Title Issues

The protection future owners need from those title issues comes with owner’s title insurance. In the case of any title issues (title defects from before your purchase, liens and debts left by a prior owner, forgeries and fraudulent transfers, errors in the public record, etc.), an owner’s title insurance policy provides you with the coverage to secure your purchase. Owner’s title insurance is optional and not legally required, but it is highly recommended for the added protection you’ll get. There’s a one-time premium at closing for payment; coverage lasts for as long as you (or the heirs) own the property. In New Jersey, the seller usually pays for the owner’s title insurance, which may be negotiable in a competitive buyer’s market.

Point #3: It’s Highly Recommended You Get Owner’s Title Insurance Along With Lender’s Title Insurance

More than likely, buyers will purchase lender’s title insurance as part of the closing process; however, that title insurance offers them no protection. Without the added security of owner’s title insurance, there’s always the chance that a title issue may cause you to lose your equity and your home - all while the lender’s investment is protected.

Secure Your Investment With Owner’s Title Insurance

The difference between lender’s and owner’s title insurance is actually quite simple: lender’s insurance protects the mortgage lender, while owner’s title insurance - not legally required, but highly recommended - protects the buyer against any title issues that arise. Potential buyers need to know the difference and know what they’re covered for during the real estate process. For a relatively small cost, owner’s title insurance offers people looking to purchase a home or property the peace of mind they need to be protected against any title issues that may arise.

About Cortes & Hay

Cortes & Hay offers over 50 years of experience in residential, commercial, and industrial title insurance. Our veteran leadership provides a wide range of expertise—from multiple-tract assemblage to improvements on leased land or residential subdivisions—giving our clients the confidence and peace of mind they deserve in their title insurance transaction. Additionally, Cortes & Hay specializes in 1031 exchanges and settlement services, including property sales, purchases, and refinancings, as well as attorney-assisted closings.

As a commitment to our clients and everyone we do business with, Cortes & Hay takes the strictest steps to conform with all industry standards set by the American Land Title Association’s (ALTA’s) Title Insurance and Settlement Company Best Practices.

Cortes & Hay has two convenient locations in New Jersey (Flemington and Hoboken) and proudly serves the entire state.

Contact Information:

Cortes & Hay Title Agency, Inc.

110 Main Street St #1
Flemington, NJ 08822
United States

Michele Caporin
(908) 782-8850
https://cortesandhay.com/