Every lender requires title insurance. The company issuing
the title insurance policy will research legal records to
make sure that you are receiving clear title, or ownership,
to the property.
Problems with title can limit your use and enjoyment of real
estate you have purchased, as well as bring financial loss.
Each year, millions of dollars are involved in title
disputes.
Basically, title insurance protects you from losses as the
result of claims on the ownership of your real estate.
Unlike other insurance policies, such as homeowners and
auto, title insurance protects you from things that may have
happened in the past.
Title insurers, through an extensive search of the public
records, provide you with a detailed list of the claims that
other parties may have in the real estate, such as:
Taxes
Liens
Loans
on the property
Easements
The
rights of others to use the land
But even the most careful preventative work cannot locate
hidden hazards of title. Hidden hazards can show up after
you buy your real estate, causing an unpleasant and costly
surprise. Title insurance offers you financial protection
against these hidden hazards. Examples of hidden hazards
are:
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A
forged deed that transfers no title to real estate
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Previously undisclosed heirs with claims against the
property |
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Instruments
executed under expired or fabricated power of attorney
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Mistakes in the public records |
The
cost of title insurance varies. It is a one-time payment
that safeguards you against loss arising from hazards and
defects already existing in the title. You are protected by
title insurance for as long as you own the real estate.
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See also:
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