Why Title Insurance?

Title Insurance – Eliminate Risk and Loss

Owning real estate is one of the most precious values of freedom in this country. You want to be sure that the property you are buying is yours, no strings attached. Other than your mortgage holder, no one else should have any claims or restrictions against your home. Title insurance is issued after a careful examination of the public records. Despite the knowledge and experience of professional title examiners, even the most thorough search cannot absolutely assure that no title faults are present. In addition to matters shown by public records, other title problems may exist that can’t be disclosed in a search. Title insurance eliminates any risks and losses caused by faults in title from anything that happened before you owned the property. Title insurance is different from other types of insurance in that it protects you 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 undiscovered 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.

Why the Seller Needs to Provide Title Insurance?

Any purchaser will need evidence that their investment in your property is free of title defects. The title insurance policy that you provide is a guarantee that you’re selling a clear title to your real estate, without any legal attachments that might limit or jeopardize ownership. It will reassure your purchaser that they are protected from any risks or losses and could help you close the deal.

Why get Title insurance
Why do i need title insurance

Why the buyer needs title insurance?

Without title insurance, you may not be fully protected against errors in public records, hidden defects, or mistakes in examination of the title. As a result, you may be held fully accountable for any prior liens, judgments or claims brought against your new property. If this should occur, your title policy insures that you will be defended at no cost against all covered claims up to the amount 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. The policy amount must be equal to the purchase price.

What does title insurance protect from?

Undisclosed heirs
False impersonation of the true land owner
Probate matters
Deeds and wills by persons of unsound mind
Mistakes and omissions resulting in improper abstracting
Forfeitures of real property due to criminal acts
Documents executed by a revoked or expired Power of Attorney
Defective acknowledgements due to improper or expired notarization
Forged deeds, mortgages, wills, releases and other documents
Deeds by minors
False affidavits of death or heirship
Rights of divorced parties
Conveyances by undisclosed divorced spouses
Deeds by persons falsely representing their marital status
Errors in tax records
Adverse possession

Do you have questions about title insurance?