All About Title Insurance
What Is Title Insurance?
A Title Insurance Policy insures that you have clear title from the seller-- this means that the property is free and clear of any encumbrances. Having this policy insures that you will be protected from damages or loss that result from title defects.
What is a Title Search?
A Title Search will be conducted prior to isuance of title insurance. This search is an examination of the public records for documents that may pertain to the property. The purpose of this search is to verify the seller's right to sell the property, as well as to indentify any other deeds, open mortgages, judgments, miscellaneous documents or delinquent taxes that may affect the title.
Do I Need Title Insurance?
Problems with a title can limit use and enjoyment of a property and can also bring financial loss. An Owner's Title Policy will protect the buyer should a title problem arise that was not found during the initial title search. This Owner’s Policy will remain in effect for as long as you or your heirs retain an interest in the property—for a one-time premium (based on the purchase price). This means that if someone asserts a claim against the property in the future, title insurance will clear up the title problems or pay the insured’s losses.
Possible Hidden Title Problems:
- Errors or omissions in deed
- Forgery or Fraud
- Undisclosed heirs
- Bad Power of Attorney
- Estate not property probated
Title Insurance can protect you from all of these!