What is Title insurance?
Title insurance is a vital safeguard in every real estate transaction, protecting both buyers and lenders from potential financial losses due to defects in the title of a property. Unlike other types of insurance that cover future events, title insurance addresses issues that may arise from past ownership, such as liens, undisclosed heirs, or boundary disputes.
Having title insurance is essential because it ensures that your ownership rights are secure, giving you peace of mind as you make one of life’s biggest investments. By covering legal fees and other costs associated with resolving title issues, title insurance protects your investment and helps you navigate the complexities of real estate with confidence. Trust Absolute Title & Settlement to guide you through the process and secure your property’s title!
Do you need an owner’s title policy?
Most definitely! Title Insurance is a means of protecting yourself from financial loss in the event that problems develop regarding the rights to ownership of your property. There may be hidden title defects that even the most careful title search will not reveal. In addition to protection from financial loss, Title Insurance pays the cost of defending against any covered claim.
10 common examples of items covered by an Owner’s Title Insurance Policy include:
Improper execution of documents
Mistakes in recording or indexing of legal documents
Forgeries and fraud
Undisclosed or missing heirs
Unpaid taxes and assessments
Unpaid judgments and liens
Unreleased mortgages
Mental incompetence of grantors on the deed
Impersonation of the true owners of the land by fraudulent persons
Refusal of potential purchaser to accept title based upon condition of title