All About Title Insurance
So... you’re buying a house!
Owning a home continues to be one of the most important parts of the
But having the deed to a piece of land does not necessarily mean the
property is yours free and clear. Other people may have certain prior rights
or claims that your deed will not erase. Such rights can go back all the way
to the earliest owners of your new property.
You want to be sure you will remain the true owner, and that there will be
no claims or liens against your new home — other than the mortgage you
agreed to pay.
A “loan policy” is title insurance that protects your lender
When you close on your mortgage loan, title insurance may be included in
the amount you pay. Known as a loan policy, this type of title insurance
covers the mortgage company for up to the full value of the policy if you
are unable to pay your mortgage bills and the company suffers a loss.
Warning: The loan policy does not protect YOU!
You can protect your own interest in the property you just bought with a
policy called “owner’s title insurance.”
How to protect your real
property against hidden risks
Protection for you: “owner’s title insurance”
An owner’s title insurance policy describes the property and defines your
ownership “limitations” — if any. The limitations could be in the form of existing
liens or items disclosed to you before you agreed to the purchase. In other words,
limitations you have accepted in buying the house.
Owner’s title insurance protects you against what you don’t know. It helps take
the risk out of buying property whose legal history is long and may not be
completely known to you. The so-called “hidden risks” covered by such a policy
are not common, but they do exist. If your property’s ownership history carries
such risks, you could lose the property and the money you paid for it!
The mortgage company has a loan policy to protect its interest in the money it lent
you. To protect your own interest in your new property, consider owner’s title