Title Insurance?


As a current homeowner or even a new home buyer, you have a natural assumption that as long as the mortgage is paid and the property tax taken care of each year, it is reasonable to assert that you own your home.

What if you discovered you didn’t – exactly.

“It’s not that you don’t own the house” the attorney on the phone is explaining, “it’s that a cloud on the title wasn’t cleared. Since you paid cash, it’s best you hire your own attorney to handle this matter for you.”
What?!?! How is it possible that you could find yourself on the receiving end of a conversation like that?

In most real estate transactions it is assumed that part of the closing cost for the seller is the purchase of Title Insurance. Title Insurance protects each party in a transaction:

  • It provides legal defense of the rights of a seller if a problem arises after the closing of a sale.
  • It protects and defends the legal rights of a buyer concerning conveyance of title on a particular piece of property.
  • It protects and defends the legal rights of the lender who is financing the purchase for a buyer.

It doesn’t happen often, but it does happen. The legal chain of title transfer can go awry for any number of reasons from a signature in the wrong place to a sheet of paper improperly filed – any of these can leave a question about legal ownership of a property.

What is called a defect or cloud on a title that may somehow be overlooked are things like mineral rights or water rights, assumed to run with title of a property having been deeded separately at some point in the chain of previous title recordings.

More commonly it is discovered that:

  • • A mortgage was paid in full but not properly charged off.
  • • Names were misspelled on previous title transfers.
  • • Legal description with incorrect information.

Whether unpaid taxes, liens that weren’t correctly recorded or even gaps in the legal chain that can go hundreds of years into the past, Title Insurance protects all parties to a real estate transaction.

Your real estate representative will watch over the details to help eliminate worries like this so your buying or selling experience will be a pleasant one from start to finish.