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Why do I need title insurance? One of the most important investments you will make is the investment in your home. You would probably not consider purchasing a home without homeowner insurance or driving a car without car insurance. Title insurance is just as important as the above. Title insurance is issued after a search and examination of the public records is completed from the county where the property is located. All matters of the public records are included in this examination however, other title issues may exit which cannot be disclosed in this detailed search. Hidden Risks: Listed below are some of the most common title issues that can result in a claim against your title and more importantly, loss of that title. . Forgery . Unknown or missing heirs of an estate and/or misinterpretation of the estate
. Improperly executed documents, i.e. lack of witnesses and/or notary
. Errors in legal description
. Deeds given by incompetent persons or minors . Unpaid taxes that a title search may not show such as estate or income taxes . Fraud Remember, these are just a few examples of problems that could arise in connection with previous owners. How does title insurance protect me from these hidden risk and defects in title?
Title insurance provides you protection against any lawsuit that may challenge your title, as insured, and will ensure either a clearance of those problems or will pay the insured’s losses up to the face amount based upon the sales price of the home. Why do I need title insurance when I am furnishing a loan (mortgagee) policy to my lender? The mortgagee policy only protects the lender’s interest. There are two title policies which can be issued at the time of purchase. An owner’s policy, insuring the new owner, and the lender’s policy, insuring the lender. The mortgagee policy is a requirement by the lender and solely protects the lender’s interest from liability should a claim arise. The title insurance company would lender in that instance. you, as the owner, would not be covered under the lender’s policy and would be responsible for the defense of the claim including but not limited to legal defense if necessary.
How do you choose a reputable title company? There are several things to look for when choosing a title company. The following will give you a guide for that choice: Experience…..
Experience is one of the most important of all aspects when choosing a title company. The title defects discussed previously could only be solved properly by trained professional who knows how to correct any given problem.
Skilled Professionals…..
Skill ensures an immediate response and resolve to any questions or issues that may arise during the processing of your closing. The security that comes from the credentials met above can only be paralleled with excellent customer service.
Customer Service…..
An experienced title agent will know that building a good rapport with his/her client is an integral part of the closing process. Open communication must exist to enable a title agent to foresee problems as well as solve them. A satisfied customer almost always guarantee a smooth and trouble-free closing.
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