What is title insurance?
Title insurance is your policy of protection against loss if any
problems results in a claim against your ownership. If a claim is
made against your property, title insurance will, in accordance with
the terms of your policy, assure you of a legal defense and pay all
court costs and related fees. Also, if the claim proves valid, you
will be reimbursed for your actual loss up to the face amount of the policy.
Why do I need title insurance?
Because land is permanent and can have many owners
over the years, various rights in land may have been acquired by
others (such as mineral, air or utility rights) by the time you come
into possession of it, even if the land has never before been built
upon. So in order to transfer a clear title to a piece of land, it is
first necessary to determine whether any rights are outstanding.
A title search is a detailed examination of the
historical records concerning a property. These records include
deeds, court records, property and name indexes, and many other
documents. The purpose of the search is to verify the seller's right
to transfer ownership, and to discover any claims, defects and other
rights or burdens on the property.
A title search can also show a number of title defects
and liens, as well as other encumbrances and restrictions. Among
these are unpaid taxes, unsatisfied mortgages, judgments against the
seller and restrictions limiting the use of the land.
Title insurance is a must for have on the purchase any
real property. Without it you are just asking for someone to
challenge your ownership rights. For more information on title
insurance visit our specialist page below.