Untitled

Before you understand title insurance, you need to understand what a title is. Basically, a title is a term that includes all of your legal rights to own, use and sell a piece of land. The title reflects all previous ownerships and transfers, including rights previously granted by other parties, such as mortgages, deed restrictions and easements.

If there are problems (see below) with the title, the ownership of your land could be in question. Unpaid taxes, a lien (which is an unpaid claim) filed by someone who worked on the house, or any of countless other situations could cause a major problem. And even if you don’t get the land, you might still be responsible for the mortgage! That’s why it’s important to have title insurance.

So what is title insurance? It’s insurance against undisclosed problems with the title, and it protects you against financial loss due to title defects, liens or other matters of public record. Title insurance will defend you against a lawsuit attacking your title, or reimburse you for the actual money lost.

Before a policy is issued, a title insurance company conducts a search to detect, risks and losses caused by title problems.

For a one-time premium, your owner's title insurance policy will remain in effect for as long as you own the property.

MORE