About Title Insurance

What is a title?

A title is a document that shows legal ownership to a property or asset. Prior to purchase, a property's history is reviewed to determine the condition of title. Sometimes, problems (also referred to as defects) are uncovered -- including forgery and fraud, right of way and easement issues, or unpaid taxes, mortgages or liens.

How does the title review process work?

Through the title review process, the team researches the history of the title, identifies any issues or defects, and works with the proper authorities to correct them. potentially be fixed. A thorough review of legal documents is also conducted to ensure the property's description is correct. Any potential exceptions are also addressed, such as easements, rights of way and restrictions.

So, what exactly is title insurance?

A title is a document that shows legal ownership to a property or asset. Prior to purchase, a property's history is reviewed to determine the condition of title. Sometimes, problems (also referred to as defects) are uncovered -- including forgery and fraud, right of way and easement issues, or unpaid taxes, mortgages or liens.

• False impersonation of the true owner of the property
• Forged deeds, releases, or wills
• Instruments executed under invalid or expired power of attorney
• Undisclosed or missing heirs
• Mistakes in recording legal documents
• Misinterpretations of wills or deeds by persons of unsound mind
• Fraud
• Liens for unpaid estate, inheritance, income, or gift taxes
• And more

With title insurance, a buyer never has to worry that the property's history will affect their future.

If you have title insurance and a title claim is brought against a property, the owner won't be held accountable for claims covered on their policy. What's more, they'll be paid up to the amount of the policy to settle valid claims.

Without title insurance, a property owner may not be fully protected against errors, hidden defects not disclosed by public records or mistakes in the title examination. As a result, they may be held accountable for any prior liens, judgments or claims brought against their property.

Plus, when an owner is ready to sell a property, potential buyers will feel more comfortable knowing that the appropriate search was done and that the title they're buying comes free and clear of title defects.

There are two types of title insurance policies:

 Lender's Policy: A lender's policy is purchased by the property's buyer and is required by most mortgage lenders. This policy protects the interests of the bank or mortgage company until the mortgage is paid in full.

Owner's Policy: An owner's policy is also purchased by the property's buyer. It's optional, but highly recommended because the policy protects the buyer and their interests for as long as they own the property.