Title Insurance Protects Your Investment
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Purchasing a home is probably the single largest investment you will ever make. So before you sign on the dotted line, you must be certain that the property's title is free of any other claims.
A title company ensures that your new home doesn't carry expensive encumbrances and other legal obstacles.
You pay the title company a single premium which includes the cost of verifying clear title and covers you in case some fault is later discovered in the title.
The title insurance company searches the title history of the property. The title insurance company can usually identify any title problems that may arise and have these problems cleared-up before you close on the property.
Because Real Estate Law is so complicated, you need an expert to make sure that all previous transactions have been correct, so you don't end up with legal problems or a problem with the title to your property. Your title insurance owner's policy will describe the property and outline any recorded limitations on your ownership. It will also set forth the title insurance company's responsibilities should any claim covered by the policy terms arise. Title insurance covers the following:
- Contested title — Someone, usually a previous owner or occupant, claims they still own the property or have not given up their claim. If this happens, the title insurance company will defend your title and will cost you nothing.
- Defective title — "Defective title" covers any number of problems with the title to your home. It can even include a "contested title". Other examples of title defects include problems with legal access to the property, easements that make the property less usable, unusable, or unsaleable. Many other complicated problems define "Defective title." The title insurance company will uncover these problems, or if they miss them, insure your loss up to the amount of the policy.
Custom Lending Group can walk you through the pitfalls of getting a mortgage. Call us at (707) 252-2700.