Title Insurance Protects Your Financial Investment

 Title Insurance Protects Your Financial Investment

By Neda Dabestani-Ryba
Prudential Carruthers REALTORS

You purchase homeowners insurance to protect yourself financially in case something happens to your property or its contents. However homeowners insurance won't protect your financial interests if a matter arises regarding past ownership of your property. That is where title insurance comes in.
Only the title to the land and not the land itself can be purchased. So, unless a homeowner possesses a clear title, he or she risks losing his/her home and the land under it. Title insurance guarantees the title as reported.
Actually there are two types of title insurance: lender policy and the owner's title insurance. Most lenders require a loan policy when they issue you a loan to protect their interest (the amount they loaned you) should a problem arise. The policy amount decreases each year and eventually disappears once the loan is paid off. Therefore the owner should also have title insurance to protect his/her financial interest. Only owner's title insurance fully protects the buyer. Should hidden defects surface at any time challenging an owner’s rights, the title company will defend the title, in court, if necessary, and cover the owner’s losses up to the full value of the policy.
But before title insurance is issued, the title company (or attorney, depending on the local practices and laws) performs a title search. A title search involves searching public land records to ascertain if the seller has the legal right to sell the property. The title company will:
conduct a chain of title, which is a review of the owner history of the property, checking for who purchased the property, who sold it, and when;
perform a tax search to verify the present status of taxes;
conduct a judgment search to determine whether there are any general liens against the property;
and, sometimes even, conduct on-site inspections to verify lot size, the location of improvements, and evidence of unrecorded easements.
According to the American Land Title Association, 25 percent of title searches find a title problem that is fixed before the insurance is issued. At this point, you may be wondering why you even need insurance following an exhaustive title search. Unfortunately, it’s nearly impossible to guarantee a title is clear of hidden defects—those circumstances that could find you in a tug of war over the property. Examples of hidden defects include mistakes in interpretation of wills and other legal documents, liens for unpaid estate or inheritance taxes, deeds by persons of unsound mind, impersonation of the real owner, forgery, missing or undisclosed heirs, falsification of records, and confusion stemming from similar names.
Your home is probably one of your largest investments. For a one-time premium, you can have peace of mind for as long as you or your heirs retain the property. Talk with your real estate professional for more information on title insurance and selecting a title company.

About the Author

Neda Dabestani-Ryba is a licensed Realtor in Maryland. She is a member of the President's Circle of Top Real Estate Professionals. She can be reached at (800) 536-3806 or visit her website for more information: http://neda.dabestani.pcragent.com/
Prudential Carruthers REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

 Neda Dabestani-Ryba

More Articles 

Online car insurance - Unknown
Online car insurance Consumers compelled to shop are greatly influenced by the cost of coverage to switch auto insurance providers, and the Internet provides them a quick and easy way to obtain insurance quotes from competing...

Need Insurance for Self Employed? - Ratliff J
If you are either self employed to unemployed, you know how important insurance can be. Are you paying top dollar for COBRA? I was too for a while until I found a great and easy website to shop for Insurance. I am sharing this with everyone so...

Car Insurance Online Quotes - No Fuss - Peter Crump
There are many ways to shop for car insurance but getting car insurance online quotes has got to be one of the easiest ways to shop for it. A car insurance online quote has many advantages such as you have access to multiple companies and you have...

The Traveller’s Insurance Checklist - Johnny Mangiante
Your trip is booked and all your reservations are made. The next thing on your "to do" list before you head off on that much deserved holiday is: Buy travel insurance. No doubt you have many questions that need answers before you can decide which...

Auto Owners Insurance – Do You Really Need It? - Peter Crump
If you think you don’t have any need for auto owners insurance, just consider the answer to this question. How would you manage to pay the medical bills of someone who gets hurt in an accident when you are at fault? If you do not have an unending...

Life insurance-features and objectives - S M
The life insurance is conceived to protect people dependent on one from the financial losses that such people would incur in case of one’s death. The life insurance policy has become a fundamental part of sound financial owing to its association...

Dog Health Insurance Buyer's Guide - Joel Walsh
Should you seriously consider buying a dog health insurance policy? Yes, you should. Here's why health insurance for dogs is a good idea: Dog health insurance saves you money. As with just about all other costs, veterinary expenses have increased...

Caregiver Stress Accounts for 27% Increase in Health Insurance Benefits by South Florida Employees - Thomas Cutler
The impact of Elder Care issues on corporate America will continue to grow as our elderly population increases: • Employees juggling job responsibilities with care giving are a reality in the workplace of today and the future. Workers are torn...

Get Fast Cheap Motorcycle Insurance Quotes In Minutes - D angelo Jones
Owning a motorcycle is like becoming VIP at a secret club. You have your own special rules and privileges as well as the genuine mystique, interest, and envy of the ordinary motorist. Couple this with the fact that most motorcycle owners can park...

5 Strategies To Reduce Your Car Insurance Premiums - Matthew C Keegan
Your latest car insurance bill has arrived and it is not a pretty site. In fact, it is downright ugly! What can you do? Must you remain hostage to the ever spiraling rate increases foisted upon you when your policy renews? In a word, no. Let's...

Health Insurance Facts and figures - Tony
Millions of Americans in 1999 without health insurance: 43 Percentage of Americans in 1999 without health insurance: 16 Biggest group of uninsured workers: Childless single workers Percentage of U.S. population with employment-based health...

Do NOT File a Home Insurance Claim - Stephen Bucaro
---------------------------------------------------------- Permission is granted for the below article to forward, reprint, distribute, use for ezine, newsletter, website, offer as free bonus or part of a product for sale as long as no changes are...