Friday, November 27, 2015

Why Get Title Insurance

What Does Title Insurance Protect Against?

-False impersonation of the true owner of the property
-Forged deeds, releases or wills
-Undisclosed or missing heirs
-Instruments executed under invalid or expired power of    attorney
-Mistakes in recording legal documents
-Misinterpretations of wills
-Deeds of persons of unsound mind
-Deeds by minors
-Deeds by persons supposedly single, but in fact married
-Liens for unpaid estate, inheritance, income or gift taxes

How Could There Be A Problem If The Title Has Been Searched?

Title insurance is issued after a careful examination of copies of the public records. Even the most thorough search cannot absolutely assure that no title hazards are present, despite the knowledge and experience of professional title examiners.  In addition to matters shown in the public records, other title problems may exist that cannot be disclosed in a search. 

The Lender Is Getting A Policy, Why Do I Need One?

The lender's title policy protects the lender against loss due to unknown title defects.  It also protects the lender's interest from certain matters which may exist, but not be known at the time of sale.  This policy only protects the lender's interest.  It does not protect the borrower.  That is why an owners policy is necessary, which can be issued at the same time as the lender's policy for a nominal one-time fee.

What Protection Does Title Insurance Provide Against Defects And Hidden Risks?

Title insurance will pay for defending against lawsuits attacking the title as insured and will either clear up title problems or pay the insured's losses.  For a one-time premium, an owner's title insurance policy remains in effect as long as the insured or their heirs retain an interest in the property, or have any obligation under a warranty in any conveyance of the property.  Owner's residential title insurance, issued simultaneously with a lender's policy, is the best title insurance value you can get.

What This Means to the Title Insured.

The peace of mind in knowing that the investment they have made in their home is a safe one.
Happy Investing!
Today's blog courtesy of Sandy Andersen with Chicago Title Insurance Company

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