 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
 |
|
| Q: |
Is it OK for the same lawyer to represent both me and my lender? |
| A: |
The interests of buyer and mortgage lender are usually sufficiently similar so that no conflict of interest exists if they use the same lawyer. Although you always have the right to counsel of your own choosing, in most cases, it will be more economical and efficient for the same lawyer to represent both you and your lender. In fact, the practice has become customary, and you will find a wide selection of lawyers who have been approved to represent your lender, or can obtain its approval.
|
| Q: |
Why does my lender require me to purchase a lender’s policy of title insurance? |
| A: |
By issuing a policy of title insurance, the insurer agrees to insure against and defend claims against the property and title defects that could not be anticipated by your lawyer’s title examination (for example, claims resulting from forged deeds, survey errors, and mechanics’ liens (which, by statute, can “relate back” to a date prior to your closing, even though filed afterward)). If you are taking out a mortgage loan, your lender will require you to buy it a “lender’s policy” of title insurance for a one-time premium, as a condition to making the loan. |
| Q: |
Do I really need to buy a policy of title insurance for myself? |
| A: |
It is highly recommended that you also purchase an “owner’s policy” of title insurance. The lender’s policy will not protect your interest in the property from the kinds of claims mentioned above, and your stake in the property will be greater, both economically and from a personal perspective, than the lender’s interest. The cost of the one-time premium for the owner’s policy is significantly less than that of the lender’s policy. Connecticut’s legislature thought it so important that you purchase an owner’s policy that your lawyer is required by statute to obtain from you a written waiver of your right to purchase an owner’s policy, should you decline to do so. |
|
|
|
|
 |
|
|
|
|
