What Risks Are Covered with Title Insurance?
A title search and the issuance of title insurance means the ownership of the property can be cleanly conveyed to the new owners. During the search, the history of the property is researched verifying that all previous claims or liens have been satisfied, allowing a clear title to be issued. If any claim is overlooked, the title insurance protects the owner from the claim. Remember that if it’s not in writing on a real estate deal, it’s not enforceable.Lender’s Title Insurance insures the priority and validity of the mortgage loan and is required by banks and mortgage companies.Owner’s Title Insurance protects your investment by:
• Errors in the public records such as incorrect information in deeds and mortgages regarding names,signatures or legal descriptions.
• Judgments, liens, mortgages, unpaid taxes and assessments claimed against the property.
• Claims of ownership by others to your insured property.
• Invalid Deeds due to forgery, fraudulent transfers or transfers by previous owners who were minors or not mentally competent.