What is Title Insurance

Your title insurance policy protects you from additional hazards, which may not be revealed in the records:

• Marital status of owner incorrectly given
• Deeds, wills, and trusts that contain improper vesting and incorrect names
• Transfer of property by a mental incompetent or minor
• Property line disagreement (i.e. a neighbor builds a fence over your property line)
• Confusion due to similar or identical names
• Outstanding mortgages, judgments, and tax liens
• Easements
• Incorrect notary acknowledgments
• A forged deed that transfers no title to real estate
• Previously undisclosed heirs with claims against the property
• Instruments executed under expired or fabricated power of attorney
• Mistakes in the public records

Under the terms of a title insurance policy, you are protected against risks and insured against loss by provision of legal counsel to defend your rights under the policy, or by being reimbursed for any loss sustained. The original premium is your only cost as long as you or your heirs own the property. You really can't afford not to be protected!

When you buy an ordinary article like a coat, a television or a watch, you do not need to know whether the former owner is married, single or divorced. You may buy a share of stock or a bond without being concerned whether the seller has a tax bill due. You may buy another person's car without being concerned whether there are any suits or judgment against the person. But when you buy a condominium, a house, any other type of building to even vacant land, it is vital to know all of these things - and many others, too. You must have a complete investigation made on every point or you may discover that the property you bought and paid for is not actually yours at all. And even after the investigation, you will need protection in the event that some point has been missed in the public records or someone makes a claim on the title to your property. This is the protection afforded by a title insurance policy.

Many special laws have been enacted for the protection of real estate - laws so strict and far-reaching that real estate is more strongly safeguarded than any other form of property. As a result, the owner of land has exceedingly strong rights, as do the family and heirs of the owner. Others have "rights" in the property, as well: mortgagers and leasehold rights, liens for unpaid taxes or others to whom the owner owes money, mining, oil or air rights, etc. Any who has such a claim is, in a limited way, a part owner and can only be deprived of their interest through settlement or release of the claim. The claim is still valid even if the property is sold without their knowledge. As a new owner, you may know nothing about these risks, but you are still vulnerable to such claims on your property. You need title insurance to protect you.