Understanding Title
Why do I need Title Insurance?
Over half of all real estate transactions have a problem somewhere in the chain of title. We find these issues and assist in taking corrective action to enable the transactions to go through and allow our customers to have peace of mind about their new home purchase.
OWNER'S INSURANCE
Even the most detailed examination of title by a real estate attorney is not a guarantee that all potential problems or issues have been identified or resolved. Hidden risks can result in costly lawsuits and legal fees. An owner’s title insurance policy protects against these potential risks:
- Clerical errors made at the Registry of Deeds.
- Forged deeds, mortgage releases or other forged documents.
- Deeds made by incompetent persons.
- Falsification of records.
- Deeds made by minors.
- Previously undisclosed heirs and previous owners.
- Improper legal description.
- A deed executed using an expired or invalid power of attorney.
- Title taken as a result of an improperly probated will.
- False representation of the true owner of the property.
- Improperly indexed liens on the property.
- And much more!
The Homeowner’s Title Policy has a one-time charge. If your home’s title is challenged based on a covered item, the title insurer will pay for defending against the challenge and will either “perfect” (make perfect) the title or pay the valid claim.
LENDER'S INSURANCE
All lenders require title insurance for the amount of the loan, but this insurance only covers the lender, not YOU. To be covered by title insurance a homeowner must purchase a separate owner’s title insurance policy. The cost of the lender’s title insurance policy, except for a nominal charge, is included in the cost of the owner’s title insurance policy. In addition, after purchasing an owner’s title insurance policy, in most jurisdictions, the property owner is entitled to receive a discount called a “reissue rate” when the owner refinances any loan for at least ten years.
