What is Title Insurance?

When you buy a home, you want to be certain it’s safely yours. But even the most diligent search of the public records could fail to disclose a number of title defects.

Things such as a forged will or deed, a title transfer by someone under age, a married person conveying real estate without his spouse, fraudulent impersonations, secret marriages, undisclosed heirs, invalid divorces, or even false affidavits, may serve to defeat your title. These are just a few of the problems that can suddenly surface. Without the protection of title insurance, you’ll be in jeopardy of losing your investment.

Are homeowners helpless against these and other pitfalls? Absolutely not. You can safeguard your real estate investment with an Owner’s Title Insurance Policy. You pay only once. There are no renewal premiums, and no expiration date on the policy. Yet the protection lasts as long as you retain an interest in the property.

There are two basic types of title insurance protection: one for the mortgage lender and one for the homeowner or real estate investor.

The lender’s policy insures the lender its claim is the first lien on the property, and that the title is vested in you, the borrower.

The owner’s policy is your permanent assurance that your ownership and use will be defended promptly against claims, whether the claim is valid or not. When you purchase the above-mentioned lender’s policy, you have obtained no protection for yourself, the owner. You need to be careful of this distinction.

The real estate you own represents stability, permanence and the hope of the future. Don’t take a chance and let your property be taken from you because of a flaw in the title. It makes good sense, for the relatively small amount it costs, to protect yourself with title insurance.