21 Reasons Why You Need Title Insurance

Dated: 04/24/2018

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1. A fire destroys only the house and improvements. The ground is left. A defective title may take away not only thehouse,but also the land on which it stands. Title insurance protects you (as specified in the policy) against such loss. 

2. A deed or mortgage in the chain of title may be a forgery. 

3.A deed or a mortgage may have been signed by a person under age.

4. A deed or a mortgage may have been made by an incapacitated person or one otherwise incompetent. 

5. A deed or a mortgage may have been made under a power of attorney after its termination and would, therefore, be void. 

6. A deed or a mortgage may have been made by a person other than the owner, but with the same name as the owner. 

7. The testator of a will might have a child born after the execution of the will, a fact that would entitle the child toclaim his or her share of the property. 

8. A deed or mortgage may have been procured by fraud or duress.

9. Title transferred by an heir may be subject to a federal estate tax lein. 

10. An heir or other person presumed dead may appear and recover the property or an interest therein. 

11. A judgment or levy upon which the title is dependent may be void or voidable on account of some defect in the proceeding. 

12. Title insurance covers attorneys’ fees and court costs. 

13. Title insurance helps speed negotiations when you’re ready to sell or obtain a loan. 

14. A deed or mortgage may be voidable because it was signed while the grantor was in bankruptcy. 

15. There may be a defect in the recording of a document upon which your title is dependent. 

16. Claims constantly arise due to marital status and validity of divorces. Only title insurance protects against claimsmade bynonexistent or divorce “wives” or “husbands.” 

17. Many lawyers, in giving an opinion on a title, protect their clients as well as themselves, by procuring title insurance 

18. By insuring the title, you can eliminate delays and technicalities when passing your title on to someone else. 

19. Title insurance reimburses you for the amount of your covered losses. 

20. Each title insurance policy we write is paid up, in full, by the first premium for as long as you or your heirs own the property. 

21. Over the last 24 years, claims have risen dramatically.

The Q & A of title insurance 

A home is the single largest investment most of us will make in our lives. To buy with confidence, getowner’s title insurance. It’s the smart way to protect your property from legal and financial claims. Tohelp you understand how it works, here are answers to common questions:What Is Title?A title is your ownership right to your property.What is a Title Search?A title search is a standard part of the homebuying process that is conducted to uncoverissues that could prevent your right to the property.Your closing agent reviews public records tosee if there are problems or defects that couldcause you legal issues.What is Title Insurance?

           If you’re buying a home, title insurance is a policythat protects your investment and property rights.There are two different types of title insurance:owner’s policy and lender’s policy.Type 1: An owner’s policy protects your propertyrights for as long as you own the home.Type 2: A lender’s policy is usually required by thelender and protects only the lender’s financialinterests. The buyer typically pays for this policy,but this varies depending on geography. 

        Werecommend you ask an ALTA member how it’shandled in your area.Why Should I Purchase Owner’s Title Insurance?Purchasing owner’s title insurance is a smartdecision because it’s the best way to protect yourproperty from future legal claims.What Does Owner’s Title Insurance Cost?The one-time payment for owner’s title insuranceis low relative to the value of your home. Thetypical owner’s title insurance policy costs around0.5% of the home’s purchase price.How Long Am I Covered?Your owner’s insurance policy lasts as long as youown your property. Your life will change over time,but your peace of mind never will.What Happens At Settlement?You sign the legal documents and receive the keys toyour home.

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