What is Title Insurance?
Title insurance is insurance against loss resulting from defects in the title to real property. It protects the owner or lender’s financial interest in the property against defects against matters of the past. It will reimburse the insured for any monetary loss incurred, up to the amount of insurance. The premium in paid only once and remains in effect as long as the insured holds title. Just as lenders require fire and casualty insurance, they also require title insurance to protect their interest in the collateral of loans secured by real estate.
Why should I buy Title Insurance?
One of the most important investments you’ ll ever make is buying a home. You want to be able to enjoy the benefits of ownership and be able to occupy and use the property as you wish, free from any boundary dispute, liens, assessments, code violations, and the list goes on. Without title insurance, you may not be protected from errors in public records, unpaid taxes, unsatisfied mortgages, mistakes made by prior searches by not finding hidden defects, all of which you could be held accountable. Your owner’s title policy insures that you will be defended against all claims and paid up to the amount of the policy to settle those claims.
What is included in a Title Search?
A title search is a search of public records that determines whether the person selling the property has the right to sell it. The search begins with current owner(s) and usually extends back in time for 30 years. Documents searched include deeds, court records, property and name indexes, judgments, liens and assessments. Ownership interests, marital status, legal and mental capacity, judgments and liens are examined for accuracy, completeness and proper execution.