Is property insurance a luxury or a necessity?

A mortgage loan is somewhat similar to a multi-layered pie: in order to get it, it is necessary to coordinate a number of additional costs. This includes not only expenses that compensate for brokerage, real estate and notary services, but also various fees for opening an account, filing an application and issuing a loan. Additionally, work on the assessment and insurance of the property is also paid. In short, the list of fees is quite extensive.



Does such a category as property rights need additional protection? Perhaps the insurance of property rights is a meaningless task?

The housing market is a conflict area. The reason for the disputes may change, but the dispute itself is unlikely to disappear from this territory.Nowadays, it is very risky to enter into a housing purchase transaction and be the last owner of an apartment that has changed several owners. The real owner is a ghostly category, because it is difficult to find him. If one of the transactions acquires the status of invalid, then all subsequent ones, in accordance with the domino principle, will also legally "collapse". Who's going to get hurt? The one who least expected it is the last owner.

The law "On State Registration of Rights to Real Estate and Transactions with it" introduced the concept of a "bona fide acquirer" five years ago. The procedure for checking the apartment by qualified specialists has come into effect – not only by notaries and realtors, but also by a government agency. The main sources of information are documents drawn up in writing and according to certain rules.

What can and must a realtor do (according to the law)? The realtor finds the housing the buyer needs and collects the documents. What can a realtor not do? The realtor cannot find previous homeowners, so he does not act as a guarantor of the reliability of the information collected. What does a notary do? Notary is the person certifying the transaction. But the notary, as well as the realtor, does not verify the authenticity of previous transactions.

Who registers the transaction? The state body to which the legal examination of the transaction is "accountable". There is one "but": the state body has no obligation to carry out work to confirm that third parties do not have rights to the object of the transaction.

The legality of the transaction cannot be guaranteed by either the state or a notary with a realtor, therefore, property insurance, otherwise referred to as title insurance, comes to the rescue. Since there is a possibility of risks, certain financial coverage is provided.

Title insurance is powerless before the fact of the existence of risks and cannot eliminate them. This is, of course, a minus. But title insurance financially and legally protects the client from the consequences of risks – and this, of course, is a plus. Your next big win could be just a click away. Start your journey at NineWin UK