Real estate is traditionally a person’s largest investment and most valuable asset. Without title insurance, you could lose your home. Title insurance is insurance against loss or damage resulting from title defects that can include undisclosed heirs, misfiled liens, real estate tax issues, fraudulently signed documents and mortgage releases, filing errors, etc. to name a few.
It's crucial for the home buyer to purchase title insurance in today's climate where fraud and forgery are on the rise.
1 out of every 3 title searches reveals a title or public record defect that's fixed before the transaction closes.
There is a one-time premium based on regulated rates filed with the state and typically less expensive than your annual auto insurance.
If you are working with a lender to purchase a home or refinance an existing mortgage, purchasing title insurance is a lender requirement. This policy protects the bank or other lending institutions for as long as they maintain an interest in the property. When purchased simultaneously with an owner’s policy, the lender’s premium is reduced to a simultaneous issue fee, depending on the type of policy.
Some common examples of problems covered by an Owner’s Title Policy include:
- Improper execution of documents
- Mistakes in recording or indexing of legal documents
- Forgeries and fraud
- Undisclosed or missing heirs
- Unpaid taxes and assessments
- Unreleased mortgages
- Mental incompetence of grantors
- Unpaid judgments and liens