WHAT IS TITLE INSURANCE?

BUYING A HOME IS LIKELY THE MOST IMPORTANT INVESTMENT AN INDIVIDUAL WILL MAKE.

Title insurance is designed to protect the owner from losses arising from defects occurring prior to the date of the issuance of your title insurance policy.

Title insurance covers the loss or damage from a defect in the title to land which arose prior to the effective date of your policy.

A title search provides basic information used by a buyer and or lender to decide if the investment is sound.

Title insurance is based upon the title search and examination of the title and the curing of certain defects.

Title insurance protects against:

• Forged deeds
• Forged Mortgages
• False impersonation
  
• Instruments executed under fabricated or expired power of attorney
  (death or insanity of the principle)
  
• Deeds apparently valid but actually delivered after the death of the Grantor
  
• Deeds by minors, people of unsound mind or not properly delivered
  
• Failure to include necessary parties in judicial proceedings
  
• Federal estate or inheritance or gift tax liens.
  
• Errors in tax records or false reports by tax officials
  
• Conflicting wills
  
• Missing heirs

The title insurance company has the power to provide affirmative issuance should a defect arise and investigate it which may save the sale or refinance of the home.

The title company will certify to the borrower, buyer and lender that the property has good, clear, recordable and marketable title.

Although the likelihood that there is a title defect may not be substantial, the financial ramification could be devastating. It is very expensive and time consuming to go to court to cure even the simple title defects. If the insured is sued involving a covered matter, the title insurance company hires counsel and pays for the costs of the defense, even if the action against the insured has no merit.