WHY IS TITLE INSURANCE IMPORTANT?

One of the most important investments you will make is the investment in your home.  You would probably not consider purchasing a home without homeowners 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 exist 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.

• Improperly recorded documents.

• 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 Risks and Defects in the 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 of their policy.  This amount is usually based upon the sales price of the home.

Why Do I Need Title Insurance
When I am Furnishing A Loan (Mortgage) Policy To My Lender?

The mortgagee policy only protects the lenders 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 defend and protect the interest of said 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 a trained professional who knows how to correct any given problem.

Skilled Professionals

Skill ensures an immediate response and resolution to any questions or issues that may arise during the processing of your
closing.  The security that comes from the credentials mentioned 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.