Also, when issuing a mortgage loan, some banks do not insist, but pay attention to the need to insure the legal purity of the transaction (title insurance - carried out in a voluntary form (subparagraph 18) of Paragraph 3 of Article 6 of the Law of the Republic of Kazakhstan "On Insurance Activities").
What are the benefits of title insurance? The insured event is the termination of the property right. Most often, this kind of insurance is necessary when buying a home in the secondary market, where there is a high degree of risk of dishonesty of sellers. It can be a real estate with debt obligations or persons discharged from an apartment, but having a legal right to it. For example, children of minor age, parents, spouses in divorce, but not officially divorced, direct heirs who are in prison.
Each of the previous owners can challenge the transaction for some of his/her justified reasons.
For example, if a deal on the purchase of housing is canceled, the property will be returned to the seller, but whether he returns the paid money to the buyer is a big question. Most often the seller either disappears in an unknown direction, or it turns out that money has already been spent and there is nothing to take from him, because he is an unemployed disabled person or something similar in this way. Here in this situation, the insurance company will pay a refund that will close the balance of the debt on the loan. Otherwise, the borrower will remain without housing, and with a huge debt to the bank, willing or not, which you to have to pay.
Excess expenses, of course, do not please anyone, but title insurance protects the borrower's interests on a par with the interests of the lender.
Thus, mortgage insurance includes three types of insurance - real estate insurance, the life of the borrower and his ability to work, as well as title insurance.
Actions in the event of an insured event and possible refusals of the insurance organization in the payment of compensation.
At the conclusion of the insurance contract, you should carefully read the insurance object, types of insurance cases, payment rules and conditions, in order to timely implement the actions in the event of an insured event.
The policyholder is obliged to notify the insurance company of the occurrence of the insured event with the obligatory observance of the deadline and the order of notification provided for by the agreement, failure to observe which may result in a refusal to pay the insurance compensation.
The bank should also receive an appropriate notification of the occurrence of the insured event within the prescribed time.
It should be emphasized that the insurance indemnity is paid only if the insurance contributions are paid in time. Indebtedness for payment of an insurance contract can become a serious reason for refusing to pay insurance compensation.
Typically, the term of the mortgage loan is from 5 to 30 years, during which no one can guarantee safety against the risks of natural disasters, illness, death or loss. In life, a lot of unforeseen circumstances and situations occur, but everyone can protect themselves and their loved ones from the consequences. Is it worth the risk? All parties are interested in the peace and prosperity of the borrower, .