WHY TITLE INSURANCE?
Buying a new home is one of life’s most gratifying experiences. However, as you approach the big day of closing, all the details can be a little overwhelming. You might even easily overlook the single most important step in the entire process – the purchase of title insurance on that wonderful new home of yours.
WHAT IS A TITLE?
A title is the legal right that a person has to the ownership and possession of land. Being that it is possible that someone other than the owner has a prior legal claim to the property, if that prior claim can be established, that person can claim an interest in the property outright or make demands on the owner as to its use.
WHAT CAN MAKE A TITLE DEFECTIVE?
Any number of problems that remain undisclosed after even the most meticulous search of public records can make a title defective. These prior hidden “defects” are dangerous because you may not learn of them for many months or even years. However, they could force you to spend a substantial sum on a legal defense that could still result in the loss of your property.
When you purchase an Owner’s Title Insurance Policy from Old Republic Title, you acquire peace of mind. Your Old Republic Title policy typically covers you from a host of prior or concurrent hidden defects, including*:
• Deeds executed under false or expired powers of attorney
• Mistaken interpretation of wills and trusts
• Incorrect representation of marital status
• Undisclosed heirs
• Mistakes in recording legal documents
• Incorrect legal descriptions
• Forged deeds, releases, etc.
• Federal, state inheritance and gift tax liens
• Errors in tax records
• Federal condemnation without notice filing
• Capacity of foreign fiduciaries
• Duress in execution of documents
• Want of jurisdiction over persons in judicial proceedings
• Deeds from minors or non-existent entities
• Discovery of later will after probate of first will
• Easements by prescription not discovered by a survey
• Deeds delivered after death of grantor or grantee, or without consent of grantor
• Deeds from incompetent persons
TWO TYPES OF TITLE INSURANCE
Your lender will likely require that you purchase a Lender’s Policy. This type of policy only insures that the financial institution has a valid, enforceable lien on the property. It does not protect you.
An Owner’s Policy, on the other hand, is designed to protect you from title defects that existed prior to the issue date of your policy. It also covers the full cost of any legal defense of your title, for any covered matter.
HOW MUCH DOES TITLE INSURANCE COST?
The one-time premium is directly related to the value of your home. Typically, it is less expensive than your annual auto insurance. Paid once when you purchase your home, it continues to provide coverage for as long as you or your heirs own the property.