Why You Need Title Insurance

Title Insurance Uncovers Hidden Problems

Title insurance offers home buyers financial protection against ownership disputes and other title problems after escrow closes. When you consider that real estate is probably your most valuable asset and the most significant investment you may ever make, title insurance offers welcome peace-of-mind.

Title Insurance is also a selling feature used to make your property more attractive to buyers as well as to lenders who are more willing to make mortgage funds available in areas where they know little about local market conditions.

The title insurance process begins with a search for title records on the property for purchase. The search may uncover things that need correction before providing a clear title, such as:

• Outstanding mortgages, judgments and tax liens
• Deeds, wills and trusts that contain improper vestings and incorrect names
• Incorrect notary acknowledgments
• Restriction on height or use of the land
• Easements for utilities or access rights

In spite of the expertise and dedication that go into a search and examination, hidden defects are still a possibility after a real estate purchase is complete, including:

• Previously undisclosed heirs with claims against the property
• A forged deed that transfers no title to real estate
• Instruments executed under expired or fabricated power of attorney
• Mistakes in the public records or unrecorded claims
• Forced removal of encroachments onto the adjoining property

The Title Insurer Is Your Advocate

The title insurer, on your behalf, negotiates with third parties, defends against a title dispute and pays on any valid claims. Unlike other kinds of insurance that protect against future events and charge an annual premium, title insurance is a one-time payment and safeguards against loss from hazard and defects already existing in the title. Extended coverage is also available to cover certain future events, as well.