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While buying a home my real estate professional
recommended that I purchase an owner's policy of title insurance.
Why do I need it?
Title insurance protects your very valuable investment by applying principles of insurance to the risks present in every real estate transaction. It is issued after thorough title search and is meant to eliminate hidden hazards and human errors.
What is Title Insurance?
Title insurance is the protection of your right of ownership in the property you buy against hidden defects or claims. It's issued after a search of the public records for past deeds, taxes, assessments and judgments, and clears any title problems. The title closing agents then close the transaction, record the documents at the court house, and transfer the title to you.
What is title search?
Before title insurance can be issued an extensive search of public records is performed.
This process is meant to eliminate title defects and safeguard your investment from financial loss.
What does title insurance protect me against?
An owner's policy of title insurance is a contract that protects you against loss or damage due to undiscovered title defects. It acts as your investment's shield from many errors that may occur during the transaction or may have occurred in the past, such as:
• Mistakes in recording of legal documents
• Forged deeds, releases or wills
• Undisclosed or missing heirs, including spouses
• Deeds by individuals of unsound mind or minors
• Deeds executed under invalid or expired power of attorney
• Liens for unpaid taxes
• Fraud and more.
What about insurance premium and the length of coverage?
Owner's policy of title insurance protects you and your heirs for as long as you own the property and the premium is paid only once at the time of purchase.
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