5 Things to Know About Title Insurance

 Title insurance protects the holder from any losses sustained from defects in the title. It’s required by most mortgage lenders. Here are five other things you should know about title insurance.

 1. It protects your ownership right to your home, both from fraudulent claims against your ownership and from mistakes made in earlier sales, such as mistake in the spelling of a person’s name or an inaccurate description of the property.

2. It’s a one-time cost usually based on the price of the property.

 3. It’s usually paid for by the sellers, although this can vary depending on your state and local customs.

 4. There are both lender title policies, which protect the lender, and owner title policies, which protect you. The lender will probably require a lender policy.

 5. Discounts on premiums are sometimes available if the home has been bought within only a few years since not as much work is required to check the title. Ask the title company if this discount is available.

A Real Estate purchase is the single most important investment many people make in their lives.  “The Title ”  or how you take ownership is insured
with Title Insurance. The purpose of a Title Insurance policy is to protect the new owners interest in the property from things that happened in the
past of which the new owners would have no knowledge without a title search. Problems with Title can limit your use and enjoyment of real estate,
and have negative financial consequences.
Title Insurance begins with a search of the public records for matters affecting both the property and the individuals concerned. If a discrepancy is
found, the history or  “ chain ’  of ownership is further reviewed.
Some examples of what could be disclosed in a search are:
•  Outstanding mortgages, deeds of trust, judgments, or tax liens;
•  Deeds, wills, and trusts that contain improper vesting, incorrect names or incorrect legal descriptions,
•   Incorrect notary acknowledgments;
•  Easements, CC&R’ s ,  and Rights of other parties.
Even with all the expertise that goes into a title search and examination, hidden defects can emerge after the close of escrow causing unpleasant
and costly surprises.
Examples:
•  Previously undisclosed heirs with claims against the property.
•  Forged deed that purport to affect said land.
•  Mistakes in the public records including erroneous legal descriptions or misspelling of parties names.
Title Insurance gives you the security and protection against many title issues and the potential loss of your most valuable asset, your home.
Definition of Title Insurance:
“ Ti tle Insurance means insuring, guaranteeing or indemnifying owners of real or personal property or the holders of liens or encumbrances
thereon or others interest therein against loss or damage suffered by reason of:  
a)   Liens or encumbrances on, or defects in the title to said property;  
b )   Invalidity or unenforceability of any liens or encumbrances thereon; or  
c )   Incorrectness of searches relating to the title to real or personal property. ”