Under current law, the ownership of the property allows the owner to possess and dispose of them at its discretion.However, some regulations provide the grounds on which this opportunity may be lost or challenged.As a result, the object will be demanded by the owner.To avoid such a situation, the law provides title insurance property.Consider what it is.
General
estate Title insurance is protection against the risk of material losses that may arise from a bona fide purchaser for the loss of property rights.This threat comes in the case of defects in the documentation.Title referred to the actual paper, confirming the exclusive right to own property.
Causes Risk
immovable objects are often the subject of a long chain of transactions.If it turns out that one of them was made sometime in violation of legislation and can be challenged (for example, the heirs), then, in accordance with the court decision, the right to property owners later canceled.This can occur if, for example, the privatization of the object have not been taken into account the opinion of the minor, or one of the owners was in prison.This situation is typical for secondary residences.In the primary market, the loss of the right of ownership occurs when the developer is trying to sell an apartment to several purchasers.
Why protect themselves from risk?
Title insurance real estate transactions acts as a guarantee for a good faith purchaser if the object will be demanded by the owner.The main circumstances in which it may occur, are considered:
- conclusion of the contract of sale with the participation of legal persons incapacitated or handicapped citizens, in violation of the law.
- Title After the disposal facility remains from third parties, and so on.
Title insurance is one of the requirements of a number of banks which are making those mortgage loans.Protection against the risk of material losses acts must-see destination when obtaining a mortgage.
subject of the contract
Title insurance may be issued to residential and non-residential buildings, parts of buildings or premises, land.In addition, it is possible and to protect the property interests of the owner.The subject of insurance in such cases is the right disposition, possession and use of property.
invalidity of the contract
Title insurance includes several cases in which the owner is given the opportunity to defend their rights.As such events, such as acts of the court decision.Upon entry into force, the rights of the owner shall be canceled.As one of the special cases of acts annulment of the contract of sale.The transaction can be considered as such if:
- contrary to the law and other regulations.
- conclude, as opposed to the foundation of morality and law and order.
- cover each transaction.
- not produce relevant legal effects.
- Done limited or completely incapacitated citizen or incompetent legal entities.
- conclude a minor whose age is between 14 and 18 liters.
- committed under the influence of delusion.
- Implemented capable person who is not aware of their actions and are not able to control them.
- concluded under the influence of threat, violence, deception, malicious agreement, difficult circumstances.
Title Insurance Property: cost
amount is determined taking into account various factors.The following criteria, which provides title insurance:
- Property price according to the contract of sale.
- cost assessment of BTI.
- market (actual) value of the area on the date of insurance.
- other factors.These include, for example, include the amount of the loan secured by residential areas.
The amount of insurance shall not exceed the actual value of the object.During the contract the size can be changed.For example, during the overhaul of the owner it can be increased in proportion to the costs.The owner shall be paid compensation equal to the amount of the contract for title insurance apartments.The cost of lost property - not only the payment of which is provided upon the occurrence of the relevant circumstances.Compensated as legal fees, payment of the lawyer representing the interests of the owner.For the amount of money, among other things, influenced by:
- term of the insurance contract.
- risk level, which is set legal expertise.
In accordance with term insurance for protection against all threats, that is, the loss of property rights on any of the above circumstances, the tariff will be:
- At year - 0.4-1%.
- three years - 1.5-2%.
- ten years - 2.2-4.0%.
Thus, the contract can be concluded for the period from 1 to 10 years.Under domestic law, purchase and sale can be challenged within three years, and in some cases, this period may be extended to ten years.
Subjects rights
Title insurance is available for legal entities, individual entrepreneurs and citizens who are the owners of the property.However, they should be registered on the territory of Russia.The first step before actually entering into a contract of insurance is gathering all the necessary papers related to the transaction.On the basis of these documents will be assessed the possibility of bringing claims to subsequently unfair to the new owner.In accordance with the level of risk the insurer will calculate the tariff.The next step is to choose the company with which the contract will be signed.It is necessary to carefully examine the documents allow firms (license) of their financial condition.In addition, you should first familiarize yourself with the terms and conditions of their services.Of the entire list will need to choose the most suitable company.The final stage is prepared and agreed upon contract.For it is necessary to enter into the personal presence of the owner in the office.As a general rule, a copy of the document is representative of the company, the second is transmitted directly to the owner.In the insurance case for compensation due will be required to provide documented evidence of the events.
