Title Insurance is a most important ingredient of the loan process.  A home purchase is one of the largest investments you will make in yourObstacle Insurance lifetime.  As such, you’ll want to know that no individual or entity has a right, claim or lien to your new property.

When you purchase a on-time title insurance premium, you will receive continuous title insurance protection equal to the purchase price of the property or its current market value.

the title company searches the property’s title history and they can usually identify title problems that could arise and have them cleared up before you close on the property.

Real Estate Law is a very complicated process.  Title companies make sure that all the I’s are dotted and the T’s crossed so you don’t end up with a clouded title and future legal problems.  Your owner’s policy will describe the property and outline any recorded limitations to your ownership. Additionally, it will also cover what the title insurance company is responsible for.  Typically, your title insurance will protect you in these areas:

  • Contested Title – Someone, perhaps a previous owner or occupant, claims they still own the property or have not given up their claim to it.  If this occurs, the title company will defend your title at no expense to you.
  • Defective Title – This will cover any number of problems with the title to your home.  It can include a “contested title“.  Defects are usually rare, but they can be prolematic, making the property inaccessible, unable to be built, or unsaleable.  Other complicated problems define “Defective Title” or “Clouded Title.”  A title insurance company will find these title problems, or should they not find or miss them, protect you from financial loss – up to the amount of the policy.