What is Title Insurance?
Title Insurance provides a guarantee of ownership of your property. It informs you of the nature of any other interests in the property and protects you against recorded claims of ownership to, or interests in, your property. The title company searches public land records for matters affecting title to the property. The results of the record examination is summarized in a document called a “Commitment for Title Insurance.” This allows the lender and purchaser to evaluate the legal condition of title to the property before it is acquired. The title company also agrees to issue a title insurance policy if certain requirements stated in the commitment are satisfied. Occasionally, in spite of an exhaustive title search, hidden hazards can emerge after closing. Examples include: mistakes in public records, previously undisclosed heirs claiming ownership to the property, forged deeds, incorrect legal description, mental incompetence of grantor, etc. In the event a defect in title is revealed, title insurance protects you.
Loan Policy v. Owner’s Policy
If you obtain a mortgage, the bank almost always requires you to purchase a Loan Policy. A Loan Policy is based on the dollar amount of your mortgage and it protects the lender’s interest in the property should a title problem arise. An Owner’s Policy protects you! It is issued for the total purchase price of the real estate, and it protects you against hidden claims of ownership to or interest in your property. Owner’s Policy is a one-time fee included at closing and lasts as long as you or your heirs have an interest in the property. It will also pay for any legal fees in defending a claim to your title.
How to obtain
Contact us at info@blfllp.com
