This article about title insurance in Rhode Island is authored by attorney, Matthew Slepkow at Slepkow Slepkow & Associates, Inc.
What is title insurance? How much does it cost? Should I buy it in Rhode Island (RI) and Massachusetts (MA)?
Owner’s title insurance protects the Buyer of a Real Estate against undiscovered liens or defects in the title prior to the time of purchase in both Residential and Commercial Real Estate. Title insurance insures the record title and protects an owner of property from certain losses arising from defects occurring prior to the date of the policy. Therefore, it differs from other types of insurance because it is retrospective in nature. It also differs from other types of insurance because there is only a single premium charge, but the protection lasts for as long as you own the property.
There are different types of policies which protect both owners and lenders. Lender’s title insurance performs the same purpose, but only for the lender in a transaction. The fee is typically about $2.50 per $1000 for lender’s coverage and $3.50 per $1000 for owner’s coverage. A Lender’s policy is required and you are strongly encouraged to purchase an owner’s policy for numerous reasons. If you have any questions in this regard or have been given advice that an owner’s policy is not necessary than please contact a Rhode Island Real Estate Attorney.
Since one’s home is usually the single biggest financial investment, it is highly prudent and wise that a homeowner would want to protect that investment and enjoy the benefits of ownership. An owner’s title policy is that protection.
What type of claims are covered by Owner’s Title Insurance?
The owner’s policy insures against loss or damages sustained by the owner by reason of historical discrepancies such as forgery, undisclosed but recorded prior mortgages, bankruptcies, liens or divorces, deeds not properly recorded, missing wills or heirs, and inadequate property descriptions.
Does a title search or insurance cover zoning issues?
No. Zoning determinations are completely separate from the title to the property. If you want an attorney to verify the zoning for you, an additional fee would be required.
Rhode Island Attorneys legal Notice per RI Rules of Professional Responsibility:The Rhode Island Supreme Court licenses all lawyers in the general practice of law, but does not license or certify any lawyer as an expert or specialist in any field of practice.
Slepkow Slepkow & Associates Inc. has been in existence for 75 years and has done over 30,000 real estate closings. We are located in East providence, Rhode Island (RI). The attorneys / lawyers at our firm practice in the following areas : Real Estate law, Residential and Commercial Closings, Zoning, Elder law, Estate planning, Personal Injury, Divorce and Family law, Business and Commercial law. We have a full time title examiner on staff.
Please visit: Information and Links Concerning Rhode Island Zoning, Planning and Land Use law and attorneys