Why Title Insurance
Title insurance is a safety net to protect your property after purchasing, from any financial claims that may be unknown at the time of closing escrow. Below are examples of some of the instances that title insurance will protect you.
A deed or mortgage in the chain of title that may have:
- been a forgery
- signed by a person under age
- been procured by fraud or duress
- made by an incompetent person
- been made by a person other than the owner, but with the same name
If a fire destroys only the house and improvements but the ground is left, a defective title may take away not only the house but also the land on which it stands. Title insurance protects you (as specified in the policy) against such loss
It protects against any heir or other person presumed dead that may appear and recover the property or an interest therein after close of escrow
Title insurance protects against claims made by nonexistent or divorced “wives” or “husbands”
A deed or mortgage which may be voidable because it was signed while the grantor was in bankruptcy
A deed or mortgage may have been made under a power of attorney after its termination and would, therefore, be void
If the testator of a will has a child born after the execution of the will, which would entitle the child to claim his or her share of the property
If there is a defect in the recording of a document upon which your title is dependent
Title insurance may help eliminate costly attorneys’ fees and court costs
Title insurance helps speed negotiations when you’re ready to sell the property or obtain a loan
Title insurance reimburses you for the amount of your covered losses
Each title insurance policy is paid in full by the first premium for as long as you or your heirs own the property. By insuring the title you can
eliminate delays and technicalities when passing your title on to someone else.
You can see from all the above reasons, that title insurance is a good decision in protecting your most valuable asset. It is negotiated as part of the offer to purchase a home and is typically paid by the seller, or split 50/50. For a million dollar property it averages a one time cost of approx. $2,500.00.
Please contact me if you have any questions.
