On closing day, a homebuyer not only attains ownership of a property, the buyer also walks with the assurance that his interest in the property is protected.
This is all achieved through the professionals working in the land title insurance industry.
When someone purchases a home, how can they be sure that there are no problems with the home's title and that the seller really owns the property? Problems with the title can limit a homeowner’s use and enjoyment of their property, as well as bring financial loss. That is what a title search and title insurance are for.
After a buyer’s sales contract has been accepted, a title professional will search the public records to look for any problems with the home's title. This search typically involves a review of land records going back many years. Nearly 40 percent of all title searches reveal a title problem that title professionals fix before going to closing. For instance, a previous owner may have had minor construction done on the property, but never fully paid the contractor. Or the previous owner may have failed to pay local or state taxes (See below for some other common title problems).
Title professionals seek to resolve problems like these before you go to closing.
What happens if a problem arises after a homebuyer moves in? This is an additional benefit provided by the title insurance industry. An Owner’s Policy of Title Insurance remains in effect for as long as the policyholder (or their heirs) owns the property that is insured. A claim could actually be filed 50 or 100 years after the policy was issued. And, an Owner’s Policy covers legal expenses involved in defending the title on behalf of the homeowner.
Let’s face it, a homebuyer certainly has more than enough to think about during the closing process when purchasing a new home. An Owner’s Policy provides peace of mind that comes from knowing their investment is protected. For more information about our Owner's Policy call one of our staff members today.
COMMON HIDDEN RISKS COVERED BY TITLE INSURANCE
- False impersonation of the true owner of the property.
- A deed or mortgage in the chain of title may be a forgery.
- A deed or mortgage may have been signed by a person underage.
- A deed or mortgage may have been signed by a person of unsound mind.
- A deed or mortgage may have been signed under an invalid or expired power of attorney.
- Misinterpretations of wills.
- Undisclosed or missing heirs.
- A deed or mortgage may have been procured by fraud or distress.
- title transferred by an heir may be subject to a federal estate tax lien.
- A defective judgement proceeding causing a lien.
- A deed or mortgage signed while grantor is in bankruptcy.
- A defect in the recording of a document.
- Deeds signed by persons supposedly single, but in fact married.
- Liens for unpaid estates, inheritances, income or gift taxes.