The system of title insurance, which became widespread in the U.S. as the best form of guarantees of rights to property, particularly real estate, we just beginning to take root. His practice in Russia is low, and no wonder that ordinary consumers are very poorly informed, which may give them a title insurance and what can not. We are ready to dispel some myths about him.
The first myth: any apartment can be insured
On closer acquaintance with the system of title insurance turns out that the insured may not be any property. So, buying in the primary market may not always be protected by title insurance. "The fact is that at the time of payment of money for housing under construction right of ownership to the buyer does not arise" - explains Ina Ignatkina, executive director of the agency "Math." Consequently, the subject of insurance in this case, no. It can only be used on the secondary market * - both urban and suburban, carried out both for residential and for non-residential premises, as well as on land.
In addition, an insurer may deny generally the buyer of real estate in this service, if the risks seem to him too much. For their evaluation is carried out so-called underwriting, or, more simply, the legal review of all documents connected with the history of the acquired facility, as well as checking the reliability of the insurer. Underwriting may conduct as an insurance company and realtor. Agent in the process performs the functions of manning documents and their preliminary examination, the identification of properties with high-risk and dropout rates of those on which the risk can not be accepted for insurance. For this study all the transitions of ownership.
"It matters, and how you moved to the right of ownership: the purchase agreement, the dedication, by inheritance or by court decision - says Anastasia Kuznetsova, Legal Century21Street Realty. - In addition, analysis of the probability of past events that could not be recorded in the documents: the secret marriages and unknown heirs. Only the results of such a complete study can fully evaluate the "purity" of the title. " Naturally, the more the owners had the property, the higher the risks. Each link in the chain of transfer of ownership must be legally formalized. Identification of suspicious factors described in the study may not only lead to an increase in insurance premiums, and even, as mentioned above, the denial of title insurance.
Myth Two: The insurance amount is equal to the sum of the sales contract
As we know, the real value of the transaction is not always reflected in the contract of sale of the property. "Given that only 2 / 3 of sales contracts contain the real value of the acquired object, get the money actually paid in full, unless the court makes a decision on the invalidity of the transaction, the buyer is sometimes impossible," - said Anastasia Kuznetsova. This is where the help comes and property title insurance, intended to protect a property owner from all sorts of conflicts of law. After all, the insured amount can be set at market value, regardless of the amount specified in the contract of sale! Thus, even if you're on the court decision will have to return to the seller an apartment, you are guaranteed to get back all their money.
But what about the price increase because of the long litigation apartment price may change? "Apartments are insured at market price at the time of purchase, and indexing of the insured on the title of apartments is not the case - says Irina Shugurova, Deputy Director General for Legal Affairs MIEL-Brokerage. - Therefore, when an insured is paid the amount on which the apartment was originally insured. In this case it may be advisable: after the expiration of the policy, with the extension of title insurance in the policy specify a new market value of the object, if she grew up. If the apartment is in the price fell, then the amount you can leave the old. "
The third myth: the court can not walk
Some believe that by signing the contract of title insurance, you can forget about any possible claim. However, it is not. Representatives of the insurance company is not obliged to answer in a case in court instead of his client. He will participate in the trial as a defendant. Such proceedings, we recall, can take several years.
Another thing is that title insurance is in itself reduces the risk of claims. "It is natural, since the insured transaction is carefully checked by the insurer, so the chances of losing property among customers, taking care to assure tend to zero" - said Ina Ignatkina.
Myth Four: Title insurance is expensive
Indeed, the real estate agency owner's title insurance is for a fee, which amounts to an average of 0,8-1,5% of the purchase price. But some companies, such as "Math", offers these guarantees at no additional fees and commissions. "The procedure for insurance transactions through the" Math "made as comfortable as possible for the customer and requires no extra effort on his part (eg, office visits insurance companies). When signing a contract of sale apartments new owner gets his hands on an insurance policy, confirming the quality of the exchange, "- said Ina Ignatkina. A company NDV-Estate offers its clients a policy of title insurance ROSNO at his own expense the purchase of apartments sold through this agency.
Myth Five: the contract model, and reading it is optional
As noted in the beginning, the system of title insurance still new to Russia, and the lack of practice leads to a lack of established mechanism for obtaining insurance reimbursement. Therefore, Anastasia Kuznetsova advised to carefully read the insurance rules, which describe the entire process of obtaining insurance money - from the first notification of the bank about the possibility of the insured event until the entry into force of the court, which is the basis for payment of insurance compensation. Because of insurance regulations may contain things like the timing and procedure for notifying the insurance company, or even restrictions such as applying for legal aid. Some insurance companies insist on providing only legal services lawyers or lawyers cooperating with the insurance company. There have been cases where non-compliance of these requirements led to a refusal by the insurance companies for insurance claim.
* However, in recent years in the market there are exceptions: ROSNO invites all purchasers of the apartments in the agency "NDV-estate" policy of title insurance with additional coverage of financial risks holders, then there is the fear still under construction and housing.