When you buy a home, you want to certain it's safely yours. But even the most diligent search of the public records could fail to disclose a number of title defects.
Things such as a forged will or deed. Or a title transfer by
someone under age. Or a married person conveying real estate
without his or her spouse. Or fraudulent impersonations.
Secret marriages. Undisclosed heirs. Invalid divorces.
False affidavits. These are just a few of the items title
insurance protects against, so you will not be in jeopardy of losing your investment.
First, a service known as a title search describes - as well as possible - the condition and quality of the title to the land you are buying. Then, your title insurance protects you against mistakes or threats that might otherwise result in financial loss to you - including those hidden,
Your title insurance protection is a permanent assurance that your ownership and use will be defended promptly against claims.
There are two basic types of title insurance protection - one for the mortgage lender and one for the homeowner or real estate investor.
If a mortgage is to be placed on your new home, the mortgage lender will probably require that you purchase title insurance to protect the institution's position as a holder of a mortgage loan. But this is mortgagee's title insurance policy doesn't protect you, the homeowner. You need an
owner's title insurance policy to protect your investment.
You pay only once. There are no renewal premiums, and there is no expiration date on the policy. Yet the protection lasts as long as you, or your heirs, retain an interest in the property.