Title insurance is one of the expenses associated with a real property purchase. All lenders in NJ require title insurance when they provide funds (mortgages), to purchase real property.
This insurance ensures that there are no claims against the title of the real estate. Title insurance in NJ protects both the lender and the owner from past mortgages and debts.
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What is the cost?
The state legislature has set the rates for NJ title insurance. The value of the interest you are buying is usually the basis for the premium. The owner's policy is issued when the property is purchased.
It is calculated on the total consideration including any unpaid principal sums of any mortgages, other liens, claims, and taxes. The policy in NJ can be issued for more than the full consideration if the insured and the insurer agree.
There are three types of title insurance rates in NJ. The "Basic Rate" title insurance rate applies to properties that have not had title insurance in the last ten years.
If the title insurance policy in NJ is purchased by a purchaser, the rate called the "Reissue Rat" will be applied. This is if the property being insured is identical or part of the property that has had title insurance in the ten years immediately preceding the insured transaction.