Why Title Insurance

With all the hoops you have to jump through to buy a home, you’d think that would be enough to prove your home is indeed your home. But alas, such is not always the case. A myriad of situations can stand between you and a marketable title-a condition that states evidence of your problem-free ownership rights to a particular property. (Property is said to have marketable title when the title, or rights to a property, has no problems or only minor problems that any well-informed and prudent buyer would accept.)

The purpose of title insurance is to secure your legal claim to the property and protect you against title “defects”- legal rights to a property claimed by somebody else. Unfortunately, hidden defects can surface even after you’ve ‘i, gone through “closing”, (The final step of a property sale transaction, in which the legal (“closing”) documents, (e.g., I deed, note, mortgage, affidavits) are executed and funds disbursed in accordance with the terms of the .’, sales contract or loan myriad of situations can stand between you and a marketable title. With title insurance, the title insurer not only pays the costs if you’re ever forced to defend your ownership in court, but also covers any financial loss if the title defects can’t be settled.

To get a mortgage you’ll have to buy a lender’s title insurance policy. This protects the lender against any title problems. But to protect your interests, you’ll need owner’stitle insurance, as well.

What happens if defects are found?

A title search involves learning the legal history of a property. This is done by researching the public records to disclose the previous owners of record, prior deeds, mortgages, court judgments, proceedings and divorces,foreclosures, tax and construction liens, and other things that can affect title. If a title search reveals obvious defects, you can ask the seller to undertake legal proceedings to clear them up. Or, you can withdraw from the deal. There are also hidden defects that may not surface even in the course of a thorough title examination. One of these could put your ownership of the property in question even after you’ve closed, which is why title insurance is so critical. We can help you rectify any problems down the road that occur as a result of these hidden defects. Some examples of hidden defects include the following:

foreclosures, tax and construction liens, and other things that can affect title. If a title search reveals obvious defects, you can ask the seller to undertake legal proceedings to clear them up. Or, you can withdraw from the deal. There are also hidden defects that may not surface even in the course of a thorough title examination. One of these could put your ownership of the property in question even after you’ve closed, which is why title insurance is so critical. We can help you rectify any problems down the road that occur as a result of these hidden defects. Some examples of hidden defects include the following.

Lost or forged deeds . Married seller who represents himself or herself as single . Claims of undisclosed heirs. . Impersonation of another. . Clerical errors by courthouse clerks. . Incorrect legal description of property. Contracts signed by minors or incompetent mentally persons. . . Improperly probated will. . Confusion of title resulting from similar names. The purpose of title insurance is to protect against these types of defects. The title examination, by a trainedprofessional, is the first line of defense-and protection. The title insurance policy is the second line of protection for everything the title exam would not have revealed (hidden defects). One-time cost. You can expect to pay a one-time charge ranging from a few hundred to over a thousand dollars, depending on the sales price or loan amount, for title insurance at closing. Unless you refinance your loan, this is the only time you’ll have to pay this premium.