To ensure clear title and true ownership of the property
When you purchase your home, how can you be sure that there are no problems with the home’s title and that the seller really owns the property?
Problems with the title can limit your use and enjoyment of the property, as well as bring financial loss. That is what a title search and title insurance are for.
After your sales contract has been accepted, the title examiner searches the public records to look for any problems with the home’s title. This search typically involves a review of land records going back many years.
More than 1/3 of all title searches reveal a title problem that title professionals fix before you go to closing.
Sometimes title problems occur that could not be found in the public records or are inadvertently missed in the title search process. To help protect you in these events, it is recommended that you obtain an Owner’s Policy of Title Insurance to insure you against the most unforeseen problems.
The Owner’s Title Insurance, called an Owner’s Policy, is usually issued in the amount of the real estate purchase. It is purchased for a one-time fee at closing and lasts for as long as you own the property. Only an Owner’s Policy fully protects the buyer should a covered title problem arise with the title that was not found during the title search.
Hidden title problems can include:
— Errors or omissions in needs
— Mistakes in examining records
— Forgery
— Undisclosed heirs
An Owner’s Policy provides assurance that your title company will stand behind you — monetarily and with legal defense, if needed — if a covered title problem arises after you buy your home.
The title company will be there to help pay valid claims and cover the costs of defending an attack on your title. The Owner’s Policy protects you for as long as you or your heirs have an interest in the property.
When you refinance you are obtaining a new loan, even if you stay with your original lender. Your lender will usually require a new title search and Loan Policy to protect their investment in the property.
You will not need to purchase a new Owner’s Policy; the one you bought at closing is good for as long as you own the property.
Even if you recently purchased or refinanced your home, there are some problems that could arise with the title.
The lender needs reassurance that the title to the property they are financing is clear.
If you have any more questions or if there’s anything about Title Insurance that you’re unsure about, please don’t hesitate to reach out to us. We’re here to help and would be more than happy to address any concerns or confusion you may have. Feel free to contact us anytime!