what is title insurance in arkansas?
Title insurance is a major cost component of closing costs that always intrigues a first-time homebuyer. title insurance in arkansas protects buyers and lenders from financial liabilities that may arise due to a title defect or hidden lien.
Take a look at our title insurance explainer video to see how title insurance can protect your lender and your property in the event of a title defect.
There are two types of Arkansas title insurance policies: lender’s title insurance policy and owner’s title insurance policy.
Arkansas lenders often require borrowers to purchase an arkansas lender title insurance policy that guarantees protection for arkansas lenders against problems arising from defects in the title of an arkansas property. On the other hand, the Arkansas homeowner’s title insurance policy protects the buyer against claims and liens.
Arkansas title insurance policy premiums are displayed as line items within a closing cost spreadsheet for a buyer and seller, such as a closing disclosure, loan estimate, hud- 1 or a high clearance statement. If you want to preview what these costs look like, use this free Arkansas title insurance calculator.
how much does title insurance cost in arkansas?
arkansas is not one of the busiest states when it comes to real estate transaction volumes. The median value of homes sold in Arkansas is $145,323.
Generally, a $150,000 property costs $450 for the owner’s policy, while a lump sum of $50 is charged for the lender’s policy which protects the lender.
here are some more use cases:
- for a property purchase price of $150,000 in arkansas with a 20% down payment ($30,000), the cost of a title insurance policy and the lender’s policy is $450 and $50 respectively.
- For a $150,000 property purchase price in Arkansas purchased with cash, the cost of the owner’s title insurance policy is $450.
- for a property purchase price of $200,000 in arkansas with a 20% down payment ($40,000), the cost of the owner’s title insurance policy and the lender’s policy is $550 and $50 respectively .
- For a $200,000 property purchase price in Arkansas purchased with cash, the cost of the owner’s title insurance policy is $550.
- For a property purchase price of $500,000 in Arkansas with a 20% down payment ($100,000), the cost of the owner’s title insurance policy and the lender’s policy is $1,150 and $50 respectively.
- For a $500,000 property purchase price in Arkansas purchased for cash, the cost of the owner’s title insurance policy is $1,150.
- financial losses due to inadequate property inspection.
- damage due to natural calamities such as electrical storms.
- damage due to fire
how is title insurance calculated in arkansas?
arkansas offers a total of 5 pricing charts to help you estimate the cost of title insurance. these are:
Say you want to calculate the cost of the owner’s title policy for a $150,000 property. The total cost will be:
what is the owner’s title policy in arkansas?
The owner’s policy is a legal document that protects owners from unknown defects, such as the absence of heirs, incorrect documentation, unfair court proceedings, and protects their property. The owner’s policy makes up the majority of the cost of title insurance.
what is the lender’s title policy in arkansas?
The lender’s policy is often purchased along with the owner’s policy. It protects the lender from title defects, such as an outstanding construction lien on the property, title errors, and other issues that may arise after the title has been transferred to the buyer.
what doesn’t title insurance cover in arkansas?
title insurance may not cover the following:
how long is the title policy valid in arkansas?
The title policy remains valid until such time as you continue to own the property. Only when it is decided to sell should a new policy be made in the name of the buyer. the lender’s policy is valid until the mortgage is paid off.
who regulates title insurance prices in arkansas?
The Arkansas Department of Insurance is responsible for licensing title companies as well as determining and monitoring the fees imposed by these title companies in the state.
who pays for title insurance in arkansas?
The cost of title insurance is negotiable in Arkansas, but buyers generally expect the seller to pay. It will not be incorrect to say that it is customary for the seller to pay for both policies.
is title insurance required in arkansas?
The state requires that the lender’s policy be necessary to purchase in order to protect the lender from hidden title defects. however, it also states that the owner’s policy can also be purchased since the lender’s policy only protects the lender and not the buyer.
As a general rule of thumb, it’s always best to get title insurance, whether or not your state requires it.
should i buy title insurance in arkansas?
You can definitely purchase title insurance in the state of Arkansas by approaching any reputable title company. however, if you are skeptical, you can ask your agent or lender to help you through the process.
is there any discount on title insurance policy in arkansas?
technically there is no discount on title insurance in arkansas. But what you can do is opt to have both the owner’s policy and the lender’s policy co-issued at the same time. This way, you only pay a fixed amount of $200 for the lender’s policy.