What is Title Insurance?
Security for your purchase.
Owning real estate is one of the most precious values of freedom in this country. You want the assurance that the property you are buying will be yours. Other than your mortgage holder, no one else should have any claims or restrictions against your home.
Title insurance is issued after careful examination of the public records. But even the most through search cannot absolutely assure that no title faults examiners. In addition to matters shown by public records, other title problems may exist that cannot be disclosed in a search. Title Insurance eliminates any risks and losses caused by faults in title from an event that occurred before you owned property.
Title Insurance is different from other types of insurance in that it protects you, the insured from a loss that may occur from matters or faults from the past. Other types of insurance such as auto,life or health cover you against losses that may occur in the future. Title Insurance does not protect against any future faults, but does protect you from risks or undisclosed interests. Another difference is that you pay a one-time premium for a policy that remains effective until the property is sold to a new-owner even if that doesn't occur for decades.
What is a Lender's Policy?
A lender's policy, also known as a loan policy or mortgage policy, protects the lender against loss due to unknown title defects. It also protects the lenders interest from certain matters which may exist, but may not be at the time of the sale.
This policy on protects the lender's interest. It does not protest the purchaser. That is why a real estate purchaser needs a owner's policy.
What is a owner's policy?
An owner's policy protects you, the purchaser, against loss that may occur from default in the ownership or interest you have in the property. You should protect the equity you have in your new home with a title policy.
What does an owner's policy provide?
Protection from financial loss due to demands that may be charged against the title to your home, up to the cost of the title policy. Payment of legal costs if the title insurer as 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 cost of the policy.
Why the seller needs to provide title insurance.
Any purchaser will need evidence that his investment in your property is free of title defects. The title insurance policy that you provide the purchaser is a guarantee that you are selling a clear title to your real estate, unencumbered by any legal attachments that might limit or jeopardize ownership. It will reassure your purchaser that he or she is protected from any risks or losses that could help you close the deal.
Why the buyer needs title insurance.
Without title insurance, you may not be fully protected against errors in public records, hidden defects not disclosed by public records, or accountable for any prior liens, judgments or claims brought against your new property .If this should occur, you title policy insures that you will be defended at no cost against all covered claims up to the cost of the policy.
How much does title insurance cost?
The insurance commission approves and controls the premiums for title insurance policies. The premiums are paid only once and the cost depends upon the purchase price of the property and the policy amount must be equal to the purchase price.
What does title insurance protect from?
Forged deeds, mortgages, wills, releases and other documents
False impersonation of the true land owner
Deeds by minors
Documents executed by a revoked or expired Power of Attorney
False affidavits of death of heir ship
Deeds and wills by persons of unsound mind
Conveyances by undisclosed divorced spouses
Rights of divorced parties
Deeds by persons falsely representing their marital status
Defective acknowledgments due to improper or expired notarization
Forfeitures of real property due to criminal acts
Mistakes and omissions resulting in improper abstracting errors in tax records
Our underwriter is one of the oldest in the country. Over 160 years!