WHAT IS TITLE INSURANCE?

Title insurance offers you information on the status
of the title to land before you buy - and protection
against claims that may affect the title after you buy.
Here's how it works: Before your real estate transaction
closes, the public records are searched to find all
related official documents. These documents are
then examined for their effect, and form the basis of
the title insurance policy.

The examination reveals the current status of ownership
and encumbrances. It shows the current record owner,
based on a careful evaluation of all records. It also
shows the current limitations on that owner's property
rights, such as outstanding mortgages and utility
easements. A buyer or lender knows that some of
these limitations should be removed ( by paying off
and releasing a prior mortgage, for example ), or they
will continue to adversely affect the property after the
closing.

SHOULD I GET TITLE INSURANCE?

YES, because even after the most careful research, some
title flaws - such as forgery, fraud or confusion due to
similar names may go undetected. These problems may
surface at any time in the future.

Lenders rightfully want to protect their investment. The loan
policy protects the lender against loss due to unknown
title defects. It also protects the lender's interest from certain
matters which may exist but not be knowable at the time of
sale.

But this policy only protects the lender's interest. It does not
protect you. That's why you need an owner's policy, which
can be issued at the same time as the loan policy for a
nominal one-time fee. By obtaining a separate owner's title
insurance policy, protection continues for as long as you
or your heirs own the insured interest, and without any
additional fee. Ask the closing attorney at closing to get
your's.