Title InsuranceWHY TITLE INSURANCE
Owning real estate is one of the most precious values of freedom enjoyed in this country. When you decide to buy a new home, you want to be sure the property will be yours and that no one else will have any liens, claims or encumbrances against your home other than your agreed to mortgage.
LOAN POLICY - LENDER
A loan policy insures your lender's security interest against loss due to defects in your title that were discovered at the time of sale. The loan policy offers no protection for the homeowner.
OWNERS POLICY
Just as lenders want security with their title policy, you should protect the equity in your new home with a title policy. For a low one-time premium, you can receive the protection of a title insurance policy against "hidden risks" or undiscovered interests. Ask your title agent for an owners policy. Your policy should be backed by the reserves and surplus of a reputable title insurance company.
The owner's policy provides:
- Protection from financial loss due to covered claims that may be asserted against the title to your home, up to the face amount of the title policy.
- Payment of legal costs if the title insurer has to defend your title against a covered claim.
- Payment of successful claims against the title to your home covered by the policy, up to the face amount of the policy.
TITLE INSURANCE PROTECTION
Some common hidden risks protected under a title policy:
- False impersonation of the true owner of the property by your seller or the other persons formerly in title
- Forged deeds, releases and other documents
- Deeds by persons of unsound mind
- Deeds by minors
- Invalid documents executed under expired power of attorney
- Invalid deeds delivered after the death of the grantor
- Deeds by supposedly single persons but actually married
- Fraud
- Liens for unpaid estate inheritance and gift taxes against prior owners of your home
- Unrecorded easements - right of way
- Undisclosed heirs of former owners of your home or the land on which it is situated
PEACE OF MIND
Once purchased, title insurance remains in effect for as long as you own your home. Title insurance adds security and peace of mind to home ownership.
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