For many of us, buying a new home will be one of the largest investments we ever make. Title insurance protects you from financial loss; providing coverage for defects in the title, occurring prior to your ownership, potentially jeopardizing your ownership and investment. Whether you are buying or selling, the process can seem overwhelming and it’s easy to overlook the single-most important step in the process: The purchase of Title Insurance on your new home.
“Title” is the legal right that a person has to the ownership, possession, and use of land. Title Insurance protects you from financial loss in the event that problems develop regarding the rights to ownership of your property. Issues that can arise are fraudulent deeds, mortgages and releases; undisclosed and unrecorded liens, restrictions, agreements, options, conditions, and patent defects in previously recorded documents and any adverse claims of ownership. These prior “hidden” defects are dangerous and sometimes not discovered until months (or even years) into ownership. Not only does Title Insurance protect you from covered losses and prior defects, but also aides in providing legal defense for covered risks.
Title claims do occur and can be devastating. Buyers and sellers want to be confident that property disputes or claims against their ownership will not jeopardize their financial future.