Title Insurance - Piece of Mind

Purchasing a home is probably the single biggest investment you will ever make. Before closing on the house, you'll want to know that no other individual or entity has a right, lien or claim to the property.

Determining that your rights and interests to the property are clear is the business of a title insurance company.

For a modest, one-time title insurance premium, you will receive continuous title insurance protection in an amount equal to the purchase price of the property or its current market value. This premium typically includes your "owners" policy as well as the "lenders" policy.

One of the marked advantages of title insurance is that prior to a policy being issued, the title insurance company completes extensive research into relevant public records, maps and documents to trace ownership of the property and determine if anyone other than you has an interest in the property. Through its research, the title insurance company can usually identify any title problems that may arise and have these problems cleared-up prior to closing.

Your title insurance owner's policy will describe the property and outline any recorded limitations on your ownership. It will also set forth the title insurance company's responsibilities should any claim covered by the policy terms arise.

Reasons for Title insurance

1. Title Insurance will protect you against a loss on your home or land due to a title defect.
2. A deed or mortgage in the chain of title may be a forgery
3. Claims constantly arise due to marital status and validity of divorces
4. A deed or mortgage may have been made by an incompetent or under aged person
5. A deed or mortgage made under an expired power of attorney may be void
6. A deed or mortgage may have been made by a person with the same name as the owner
7. A child born after the execution of a will may may have interest in the property
8. Title transferred by an heir may be subject to a federal estate tax lien.
9. An heir or other person presumed dead may appear and recover the property or an interest
10. A judgment regarding the title may be voidable because of some defect in the processing.
11. By insuring the title you can eliminate delays when passing your title on to someone else.
12. Title Insurance reimburses you for the amount of your covered loss.
13. Title Insurance helps speed negotiations when you are ready to sell or obtain loan.
14. A deed or mortgage may be voidable if signed while the grantor was in bankruptcy.
15. Claims have risen dramatically over the pat 30 years.
16. There may be a defect in the recording of a document upon which your title is dependant.
17. Title Insurance covers attorney's fees and court costs.
18. Many lawyers protect their clients as well as themselves, by procuring title insurance.
19. A deed or mortgage may have been procured by fraud or duress
20. A title policy is paid in full by the first premium for as long as you own the property.

Courtesy of Fidelity National Title