What is TITLE INSURANCE
Title is your ownership right to your property. No homebuyer wants to inherit existing debts or legal issues that could interfere with their property rights in the future. Clear title allows you to use or modify your property.
There are two different types of title insurance: the owner’s policy and the lender’s policy. The owner’s policy is purchased by you, the homebuyer. While it is your choice, purchasing an owner’s title insurance policy is the best way to protect your property rights. The lender’s policy is usually paid for by you or the seller. It is almost always required by the lender and only protects the lender’s interest. Sometimes undiscoverable defects can come up after the title search. Title issues may include forgery, fraud, or clerical errors. Owner’s title insurance is the best way to protect yourself from losing your property. Every year, the vast majority of homebuyers in America elect to protect the largest investment of their lives, and purchase owner’s title insurance. Owner’s title insurance protects your interests after you purchase your home.
Why you may need it...
Outstanding mortgages and judgments, or a lien against the property may exist because the seller has not paid his taxes
There may be a pending legal action against the property that could affect you.
An unknown heir of a previous owner may try to claim ownership of the property.
There could be forgery in deeds, fraud in the execution of documents, or undue influence on a grantor of a deed. There could also be false impersonation by someone purporting to be the owner of the property. Online access to deeds and mortgages has made this a very easy process for thieves.
It is possible that there were errors in surveys, undisclosed or missing heirs, wills may not have been properly probated, or misinterpretation of wills and trusts may have happened during a sale.
At one point there could have been mental incompetence of a grantor of a deed, transfer of title by a minor, heirs born after the execution of a will, or heirs located due to ancestry.com or 23andme.com.
Non delivery or lack of recordation of deeds may have occurred, unsatisfied claims may not have shown on the record, or deeds were executed under expired or false powers of attorney.
There may have been confusion due to similar or identical names, the dower or courtesy rights of spouses of former owners may not have been acknowledged.
Incorrect indexing of the land records, clerical errors in recording legal documents, and delivery of deeds after the death of the Grantor may have occured.