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F.A.Q.S
Questions and Answers
What is a Title?
When you purchase a home, you are really purchasing the title to the property – which is the right to occupy and use the property.
That legal right is usually documented in the form of a DEED recorded at the local courthouse. A title may be contacted based upon past rights and claims asserted by others. These types of claims can complicate your purchase of the property, o challenge your ownership later on, and potentially cause you to lose money.
Why do you need title insurance?
A home is often the largest single investment any of us ever make. Title insurance protects against loss of value from defects that may exist in the title, or arguments made by others that such defects exist. These defects or problems include fraud, forged signatures on deeds, unknown or previous owners, linens and documentation errors. If you were uninsured and your right to the title is challenged, you cloud lose significant money defending yourself – you could even lose your home.
How does title insurance protect you?
An owner policy of title insurance protects a buyer against defects in the title of the property, either clearing up title problems or paying for your losses. For a one-time premium generally paid at closing, an owner title insurance policy remains in effect as long as you, or your heirs, retain an interest in the property.
How does title insurance protect the lender?
A lender policy of title insurance protects the lender that financed a piece of real estate against loss caused by defects in the owner’s title.
Who do I need title insurance on a refinance?
Title insurance on a refinanced mortgage is usually offered at a reduced rate, and it assured your lender that you actually own the property. It insures that no one else has a preemptive position in front of the lender, and if someone does, it pays the lender losses.
Why do I need title insurance on a brand new house?
Even if home itself hasn previous owners, the land that it stands on has. Your policy insures you as the owner of a specific piece of property. If clarifies the property rights and insures that your builder hasn used it as collateral on another loan. That there are no unidentified easements affecting your property and that no problems to hurt you later
Examples of Title Problems
This list shows why it is important to own title insurance. Although a thorough examination should identify all title problems reflected in public records, not all of these problems are apparent in public records. Any of the title problems listed here can make you title worthless and yes, these things DO happen – but an owner title policy protects you from financial losses caused by title issues.
Hidden Title Problems
Someone has presented themselves as the true owner of the land, but actually is not.
There are forged title documents.
There are people who claim to have “power of attorney” who don’t really have legal authority to act for another person.
There are deeds delivered after the death of one of the people involved, without the per-written consent of the deceased.
It is discovered that a will isn’t legally valid.
A deed is to, or from, a defunct corporation.
There are heirs missing or not disclosed in the title documentation.
Wills were misinterpreted.
Deeds were made by people of unsound mind.
Deeds were made by minors.
Deeds were made by Non-citizens.
Erroneous reports were furnished by Tax officials.
Estates were executed with key people absent.
There is an undisclosed divorce of a spouse who claims to be an heir.
There is a spouse who is supposedly, but not legally divorced from someone involved in the proceedings.
Children were born or adopted after the date of a will that involved the property.
Surviving children were omitted from a will that involved the property.
Mistakes were made in recording legal documents.
Title records were falsified.
Creditors make claims against a property that was sold by heirs or other people named in a will.
Deeds were made under duress as a last option to foreclosure.
Easements limited rights for other parties to use the land) exist that were not located by a survey
A deed incorrectly identifies publish property as private property.
There are errors in tax records.
There are deeds from bigamous couples.
Representations on legal documents (e.g. Notary seals) are invalid or incorrect.
The property was condemned but there is no official record of the condemnation.
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