Protecting your investment and safeguarding the title to your home. With few exceptions, a home represents the largest single investment most people make in their lifetime. Thus it is only natural that an owner will want to make that investment secure by protecting the basic proof of ownership. Title Insurance is the most effective and lowest cost way of doing just that.
What is a title? A title is the evidence or right which a person have to the ownership and possession of land. A defect in that title can be any legal right held by someone other than the owner to claim property or to make demands on the owner of that property.
What can make a Title defective? There are many possible causes of title defects that no examination can disclose. That is because they have never been recorded and thus to not appear in the abstract. A Title Insurance Policy protects the owner against all these hidden risks; those listed below and many more:
- Fraud. False claims of ownership, forged deeds, wills, signatures, conveyances, instruments, false representations, false records of all sorts, illegal acts of trustees, guardians, administrators and attorneys.
- Human Error. Errors in copying, indexing, recording; errors by administrators, executors, trustees, guardians and attorney; destruction of records.
- Improper Deed and Wills. Deeds by persons of unsound mind, minors; deeds delivered after death or without the grantor's consent; invalid, suppressed, erroneous wills, missing heirs, unsettled estates.
- Liens and Other Rights. Liens for unpaid estate inheritance, income, property and gift taxes; homestead rights, community property rights, irregular court proceedings, court opinion reversals, lack of court jurisdiction, defective foreclosures.
What is Title Insurance? Title Insurance is a contract to protect the owner against losses arising through defects in the title to real estate owned. If the title is insuraable, the company guarantees the owner against loss due to any defect in title or expenses in legal defense of the title pursuant to the terms of the policy.
Owner's Policies and Lender's Policies. A lender will often require a title policy for their protection alone. Such a policy does not protect the owner. To protect themselves against poissible title defected, an owner should purchase an Owner's Title Insurance Policy on the property.
Why Buy Title Insurance? When a person buys a car or consumer goods, they seldom need to know whether the formerly owner is married, single or divorced; whether they have paid their taxes or are involved in a lawsuit. But when a person buys a home it is necessary to have all that information and much more. For a while he or she may own the property, others may also have rights in that same real estate.
A competent investigation can uncover such items as unpaid taxes, easements, restrictions and more. However, all items affecting the title are not contained in a single book, in a single office or even in the same city. Then, add to this possibility of human error at a multiplicity of points. Yet what is not in the public records often causes title problems. For all these reasons and many more, a property owner needs the protection afforded by Title Insurance.