Escrow & Title
What is 'title insurance' premium structure in Delaware — is it a one-time or recurring charge?
ATitle insurance premiums are paid annually, like homeowners insurance
BTitle insurance is a one-time premium paid at closing that provides coverage for as long as the insured (or their heirs) own the property✓ Correct
CTitle insurance premiums are paid monthly as part of the escrow payment
DTitle insurance is free in Delaware — the cost is included in the transfer tax
Explanation
Title insurance premiums are one-time payments made at closing. Unlike other insurance, there are no annual renewals.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
State-Specific Concepts
Transfer Tax
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