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Title Insurance

Ever wonder what Title Insurance means for you? Here we discuss some important factors that you, as a consumer, should be aware of.

Title insurance is a mostly American-bred insurance policy that insures against defects in the title of the property. A title of a piece of property shows that the owner is in lawful possession of the said property. Therefore, title insurance is very important for property owners and can protect them against many circumstances. Although each title insurance policy has different terms and conditions, it’s most certainly worth the investment. Title insurance is similar to other insurances in the fact that it protects against future events that have the potential to occur. However, the defects we speak of here are completely different than physical defects or damage to a property.

Defects in title insurance include but are not limited to; another person claiming ownership of the property, fraud, liens, improperly recorded documents and easements. Everyone can benefit from this insurance, buyers, sellers, and lenders alike. Whatever title policy you obtain is determined by a lender and a property attorney to form a report which is then run by the buyer or seller. An escrow officer from the third party will be intensely involved to form the finest details of a particular policy. The policy should include all priorities of the buyer or seller in terms of the security they want. The policy also includes both the lender and buyers policy so that there are no discrepancies. The policy however comes second after all of the research into past records has been complete to make sure that the owner is legally the owner with no errors in paperwork.

We cannot stress the importance of title insurance because of its power to protect you from possible tragedies. For example, a seller could knowingly sell you a house that does is not rightfully owned by them, and scam you for a sale. The real owners of the home could suddenly appear and demand their property back. If you are not covered by title insurance, you may lose your new home and property just as quickly as you found it. Another issue could be that the property was inherited by the seller- under an outdated will. A more recent will could leave the property to someone else entirely and you could lose the property that way if not protected by title insurance.

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