Protecting Your Property Before and After Closing

29/October/10, at 9:07 am, mayers, adam wrote: when a deal doesnt close both buyers and sellers can be stuck. Shutterstock adam mayers personal finance editor toronto star Thestar.com Moneyville.ca416-869-4821 amayers@thestar.ca

Everyone who has been in the real estate market for quite a while knows about home insurance, but very few people know about home warranty. This is because it is not heard or seen after a year the house is purchased although some homeowners extend it beyond the policy expiration date. This warranty covers any damage to the house between the time buyer signs the contract of sale and moves in up to a year. Incidentally, there is no one standard warranty in the market. Each company has its own terms about what is covered and what is not.

The popularity for home warranty has grown in the recent years alleviating the fears of many buyers. Of course, the buyers may have had the complete home inspection done, inside out, but they still fear the uncertainty. The warranty promises to replace or repair anything that is mentioned in the coverage in exchange for an annual premium. Usually, the seller pays this premium, but that clause can be changed as agreed. Like mentioned before, many companies offer home warranty that they think will benefit both themselves and the buyer. And most real estate agents are affiliated to one of these companies which they would recommend during conversations.

Policies for the warranty may range between $250 to $500 and usually come with a low deductible. However, note that these are not home insurance policies, and most of them do not cover items that are covered by standard insurance policies. Nevertheless, the rate at which these warranties’ popularity is growing is high, so is the renewal rate. If you are selling your property, you might want to consider buying one of these, so you don’t have to pay out of pocket if anything goes wrong with the house. You don’t have to worry about fixing anything from the time the warranty is valid up to its expiry date.

That’s a huge relief. Now let us look at some more solutions to relieving your stress as a seller of your Victorian era mansion, move forward and enjoy a Florida retirement active lifestyle. The title insurance is one of them. It is an insurance to protect the title of your house against third party claims on your asset. It is a guarantee that you have a clear title to the property, and you are its sole owner. Any litigation or lien on the property will be resolved by the insurer offering this protection. Lending institutions has made it a mandatory for every home seller to have this insurance during sale. The cost to obtain this coverage ranges from around $100 to $400 or more for complicated transfers of title.

Again, what is covered and what is not covered is clearly defined in the terms and condition document that comes with this insurance policy. The charge for this coverage must be paid at the closing table. Although it may seem unnecessary, this policy comes handy in situations such as empty houses being occupied by squatters, property dispute among relatives, lien on property due to non-payment and so on.