TITLE INSURANCE – WHAT IS TITLE INSURANCE?

WHY DO I NEED TITLE INSURANCE?

Title insurance insures that any defect in title to the land you are purchasing has been called to your attention and corrected before your transaction closes. Should there be a claim made against your title as covered by your policy, it is then our obligation to protect you.

WHO IS COVERED?

Typically there are two (2) policies issued.

The Owner’s Policy insures the purchaser for the purchase price.

The Lender’s Policy insures the lender for the amount of the loan.

WHAT IS COVERED?

Title insurers conduct an examination of the public records looking for matters affecting the title to the real property. These records can include, among other things:

Deeds

Easements

Assessments

Restrictions on the property

Civil and Probate court records

Maintenance Agreements

Debts and other burdens

WHAT IF I HAVE A PROBLEM? DO I HAVE TO LOSE MY PROPERTY TO MAKE A CLAIM?

Should there be a claim made against your title as covered by your policy, it is then the title company’s obligation to protect you by:

Defending your title, in court if necessary, at the title company’s expense, or bearing the cost of settling the claim if it proves to be valid, in order to perfect your title as insured, and keep you in possession of your property. Subject to the terms and conditions of your title insurance policy.

WHAT DOES THIS COST?

Unlike the annual premiums of most other forms of insurance, you pay a one-time premium for title insurance. The premium will depend on the type of coverage you and/or your lender request. A title insurance policy protects the insured against loss suffered as a result of the title to land not being as insured in the policy.