Owners Title Insurance

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Buying a home is often the biggest investment consumers make in a lifetime. Transferring clear title to that home is a complicated task with many pitfalls. Because land typically has many owners with many different rights that have attached to it over time, it is important to insure that title is transferred accurately and free and clear of other's rights. Thus it is only natural that an owner will want to make that investment secure by protecting the basic proof of ownership.  You can protect your investment by acquiring Owners Title Insurance.

Note: Lenders Title Insurance is required for each transaction.  The borrower is required to pay for this policy. As the name implies, this policy covers the lender should a situation ever arise.  Owners Title Insurance is optional.

Owners Title Insurance takes the risk out of acquiring property whose legal history is unknown to you. Unlike other types of insurance which protects a policyholder against loss from some future occurrence (i.e. a car accident, fire etc.), owners title insurance protects you against some occurrence that has already possibly happened, such as a forged deed somewhere in the title.

The title policy remains in effect for as long as the property is owned by the insured, and only requires a one time payment to set it up.

Unlike a car, land is permanent and has the potential for many different types of unforeseen title defects. Even though title companies engage in a thorough title search to verify the Seller's right to transfer ownership and even though they search to discover liens, unpaid taxes, restrictions limiting the use of the property, unsatisfied mortgages or judgments, etc..., sometimes searches are flawed and there are many title defects that even a thorough search won't uncover.

Owner's Title Insurance insures your home for as long as you or your heirs have an interest in it and protect you against many title defects.

 

What risks does it protect you against?

  • Forged documents
  • Confusion from similar or identical names
  • Unpaid taxes
  • Misrepresentation of marital status
  • Invalid divorces
  • Undisclosed or missing heirs
  • wills not properly probated
  • Clerical errors in public records
  • Signatures of minors or mentally incompetent persons
  • abstracting errors
  • lack of legal access

  • errors in recording documents

  • claims of unrecorded rights

  • fraud in connection with the execution of documents

  • incorrect legal descriptions

  • unsatisfied claims not shown on the record

 

What is title?

A title is the written evidence or right which a person has to the ownership and possession of land. A defect in that title can be any legal right held by someone other than the owner to claim property, or to make demands on the owner of that property. 

 

Sale of Property

While there should be no risks in transferring property, they do exist. Through the years, your new property may have changed hands many times through sale, inheritance or foreclosure. Each transfer was an opportunity for an error in title to arise.
 

Consider some of the benefits of an Owner's Title Insurance policy purchased at time of closing:

  • If your title is unmarketable, it will negatively impact your next closing on your property whether it be a sale or refinance. Owner's Title Insurance protects against this.

  • You pay only a one time fee for title insurance that is good for as long as you or your heirs own the property.

  • If you purchase an Owner's Policy simultaneously with a Loan there is a significant cost savings.