To provide Greece as a nation a market oriented means to track secure land titles and create equitable processes that contribute to a stable government thus insuring a viable economy and empowering citizens by securing wealth
Title insurance is a policy issued by a title insurance company that provides you legal and financial protection against hidden risks unknown at the time of the property purchase. A must in buying in a foriegn country ! Any hidden risks (e.g.., forged or missing documents, mistakes in recording legal documents, and liens for unpaid estate, inheritance, income, or gift taxes) could potentially lead to loss of title to the property and a significant financial loss.
Title insurance will pay for defending you against any lawsuits attacking the title as insured, and will either clear up title problems or pay the insured's losses. For a one-time fee, a buyer's title insurance policy remains in effect as long as the insured, or the insured's heirs, retain an interest in the property, or have any obligations under a warranty in any conveyance of it.
To protect possibly the most important investment you'll ever make - the investment in real estate.
A lender will go to great lengths to minimize the risk of lending money for the purchase of real estate. First, credit is checked as an indication of the borrower's ability to repay the loan. Then, the lender seeks assurance that the quality of the title to the property to be acquired and which will be pledged as security for the loan is satisfactory.
The lender does this by obtaining a loan policy of title insurance. The loan policy protects the lender against loss due to unknown title defects and any other hidden risks. You will have to pay for the lender's policy during the close of escrow. This will be one of the conditions the lender will stipulate to give you the loan.
However, the loan policy only protects the lender's interest. It does not protect you, the buyer and borrower. That is why a real estate buyer needs a title insurance policy, which can be issued at the same time as the loan policy. In fact, most title insurance companies that also handle escrows will require the buyer to obtain an owner's policy. The buyer can go elsewhere to try to avoid obtaining an owner's policy , but it is highly inadvisable.
Without a title insurance policy, you may not be fully protected against errors in public records, hidden defects not disclosed by the public records, or mistakes in examination of the title of your new property. As a result, you may be held fully accountable for any prior liens, judgments or claims brought against your new property. However, your policy insures that if such an occasion arises, you will be defended free of charge against all covered claims and paid up to the amount of the policy to settle valid claims.
If the lender has title insurance protection and you, the owner, do not, what possible risk of loss exists?
As an example, let's assume real estate was purchased for $200,000. A down payment of $40,000 is made, and a lender holds a $120,000 mortgage lien on the property. The lender acquires title insurance protecting the lender's interest up to $120,000. But the purchaser's down payment of $40,000 is not covered.
What if some matter arises affecting the past ownership of the property? The title insurance company would defend and protect the interest of the lender. The purchaser, however, would have to assume the financial burden of his or her own legal defense. If the defense is not successful, the result could be a total loss of title. The title insurance company pays the lender's loss and is entitled to take an assignment of the borrower's debt. The purchaser loses the down payment, other equity in the property that may have accumulated, and the property.
And the balance on the note is still due!
Title insurance is issued after a careful examination of copies of the public records. But even the most thorough search cannot absolutely assure that no title hazards are present, despite the knowledge and experience of professional title examiners. In addition to matters shown by public records, other title problems may exist that cannot be disclosed in a search. It's the risk of these unknown problems that necessitate title insurance.
Here are just a few of the most common hidden risks that can cause loss of title or create an encumbrance on title:
By Dimitri N Kakaletri
Licensed Realtor Mortage Broker Licensed Loan officer
Corrisponding lender Bank Pireus Euro bank Alpha Bank
Owner and Founder
Hellas Title Greece
Pending Licensing Bank of Greece