TITLE Insurance FAQs
Owning real estate is one of the most precious values of freedom in this country. Get the assurance that the property you are buying will be yours. Other than your mortgage holder, no one else should have any claims or restrictions against your home. Title insurance eliminates any risks and losses caused by faults in title from an event that occurred before you owned the property.
Some of the most common problems covered include:
Unfiled or unpaid liens
Inadequate legal descriptions.
Mistakes in legal documents
Fraudulent deeds, mortgages, etc.
Title insurance is different from other types of insurance in that it protects you, the insured, 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.
You are covered for as long as you or your heirs own the property. Even though the property may be sold, you may still have a legal obligation by virtue of the warranties in the deed conveying the property. The policy insuring you would still be in effect.
Unlike buying a car or television, land title is permanent. While the function of most other forms of insurance is to protect you against losses arising out of unforeseen future events, the primary purpose of title insurance is to eliminate risks and prevent losses caused by defects in the title arising out of past events.
A title search determines based on a search of the public record, the property owner's rights. Documents searched include court records, property and name indices. Additionally, the sellers right to transfer ownership is verified, along with and claims, defects or other rights that may affect the property.
Examples of 'problems' would be: unpaid taxes, unsatisfied mortgages, judgments against the seller and restrictions on the land.
Each party needs to provide official photo-ID (e.g. drivers license or passport). If you are required to bring funds to the closing they should be in the form of a cashiers, treasurers, teller's check, or money order. Personal checks will not be accepted.