If you’re in the process of transferring property to someone else, you may be wondering how this will affect your title insurance policy. Many are understandably confused by the concept, as the rules of title insurance can often be confusing.
If you’re transferring property, you’ll be happy to know that most circumstances do not invalidate your title insurance policy. So, how is title insurance transferable, and how can you make this process easier on yourself? Read on to find out more.
Understanding Transferring with a Title Company
If you are transferring your title insurance, it means you’re transferring your property. The process of handing over your insurance policy to someone else can seem complicated at first, but you have plenty of professionals at your disposal who can help you.
Your title insurance is what ensures that your property is protected from any future problems–this way, you can’t be at fault for a past missed mortgage or a hidden structural failure. Transferring this insurance means that the transferee will be protected by the same laws.
What Will Not Affect Your Policy?
One of the biggest examples of something that will not affect your policy is removing someone from your title policy. If a husband and wife share the title insurance policy on a property, either one of these parties could quitclaim their interest and separate themselves from the policy.
This will not result in any changes in the title insurance. Subsequently, adding someone to your title policy will not cause anything to change. You can add a new spouse to the title insurance policy, and you won’t have to worry about anything being different.
What Will Affect Your Policy?
You may have to change or add insured to your policy under a few specific conditions. For example, if you quitclaim the property to an LLC or corporation that is not completely owned by you, you may have to add an additional insured to your policy, which changes it to a significant degree.
This will also happen if you quitclaim property to a trust where you are not the settler. When adding a person to a title insurance policy, you may want to obtain a Form 107.9, because any defects between your initial purchase and the addition of another may not be covered.
Work With a Title Company Who Knows How To Help You
We understand that title insurance can be a complicated thing, and it’s in your best interest to contact legal professionals. Those of us at Armour Settlement Services can help walk you through the process and necessary steps, ensuring that you are completely informed.
To be thorough, professional, and knowledgeable, work with Armour Settlement Services today. We are available 24/7, nationwide, and offer mobile settlements so you can settle anywhere, at any time! You can contact us through our website, or get involved by following our social media pages.