REASONS FOR TITLE INSURANCE

Title Insurance protects a home owner or lender against any loss or damage they might experience because of liens, encumbrances, or defects in the title to said property. As opposed to your car, life, or health insurance which assumes risk for future events, a title policy insures the past of the real property and the people who owned it for a one time premium paid at the close of escrow. It is extremely important to obtain so that the future home owner is insured against various possible title defects, below are some examples:

1. Title insurance will protect you against a loss on your home or land due to a title defect.

2. A deed or mortgage in hte chain of title may be a forgery

3. Claims constantly arise due to marital status and validity of divorces

4. A deed or mortgage may have been made by an incompetent or under aged person

5. A deed or mortgage made under an expired power of attorney may be void

6. A deed or mortgage may have been made by a person with the same name as the owner

7. A child born after the execution of a will may have interest in the property

8. Title transferred by an heir may be subject to a federal estate tax lien

9. An heir or other person presumed dead may appear and recover the property or an interest

10. A judgement regarding the title may be voidable because of some defect in the proceeding

11. By insuring the title you can eliminate delays when passing your title on to someone else

12. Title insurance reimburses you for the amount of your covered loss

13. Title insurance helps speed negotiations when you're ready to sell or obtain a loan

14. A deed or mortgage may be voidable if signed while the grantor was in bankruptcy

15. Claims have risen dramatically over the last 30 years

16. There may be defect in the recording of a document upon which your title is dependent

17. Title insurance covers attorneys' fees and court costs

18. Many lawyers protect their clients as well as themselves, by procuring title insurance

19. A deed or mortgage may have been procured by fraud or duress

20. A title policy is paid in full by the first premium for as long as you own the property


If you're thinking of buying or selling in the future make sure you hire a professional that is knowledgeable and will have all your interests at hand. To secure you future, call us today! 619-325-4191 Or if you simply have a question don't hesitate to email us nathan-crudogroup@ascentrealestate.net we'd love to hear from you!