Whom does title insurance protect?
When a property is purchased, the buyer receives title to it. It is imperative that the title the buyer receives is clear and that no one else has rights or claims to that property.
Title insurance protects the buyer and/or the lending institution against loss if that title is defective for some reason.
What does title insurance cover?
It’s the property itself, not the structure on it, that is insured. Many buyers who are building a new home are surprised to learn that they also benefit from title insurance.
What if there is a claim made against my property after the policy is written?
Although it is a rare occurrence after the rigorous title searches we perform, an item may surface that may result in a claim against your property. If that should happen, simply notify us in writing and we will negotiate with the other party, defend you in court, if necessary, satisfy any covered claim and pay legal costs incurred defending the title.
What kinds of problems do we uncover?
In our relentless efforts to uncover any matters from the past so that they will not resurface in the future, we focus on four main areas of concern. Should any problems arise relating to any of these matters after we write the policy, we insure you against possible claims or losses.
Liens — Anything from unpaid taxes to parking tickets may result in a judgment, or “lien,” against a property. Many property owners may not be aware that liens exist— sometimes long after the resolution of the initial issue.
Errors — Accidents happen, whether it’s a simple typographical error, a misfiling of a document or an incorrect legal description. Any mistake made during the course of previous ownerships and title transfers can be compounded in the future if it is not discovered and addressed during a title search.
Claims — Where there’s a will, there’s a way for any number of actions to be taken that affect the title to a property. Was an heir overlooked? Was a will drawn when the mental competence of a grantor of deed was in question? Unanswered questions like these can result in claims made against the property by former owners, ex-spouses, the government and more.
Fraud — Were signatures signed using false powers of attorney? Were some deeds transferred by a seller who didn’t actually own the property? Although these are rare, they do occur.