Why You Need Title Insurance

When you buy a home, you want to be certain it's safely yours.  But even the most diligent search of the public records could fail to disclose a number of title defects.

Things such as:

• A forged will or deed

• A title transfer by someone under age

• A married person conveying real estate without his or her spouse

• Fraudulent impersonations

• Secret marriages

• Undisclosed heirs

• Invalid divorces

• False affidavits

These are just a few of the problems that can suddenly surface.  Without the protection of title insurance, you'll be in jeopardy of losing your investment.

HOW TITLE INSURANCE PROTECTS

Are homeowners helpless against these and other pitfalls?  Absolutely not.  You can safeguard your real estate investment against these and other "horrors" with owner's title insurance.

First, a service known as a title search describes, as well as possible, the condition and quality of the title to the land you are buying.  Then, your title insurance protects you against mistakes or threats that might otherwise result in financial loss to you - including those hidden, unknown items.

Your title insurance protection is a permanent assurance that your ownership and use will be defended promptly against claims at no cost to you, whether the claim is valid or not.

WHO TITLE INSURANCE PROTECTS

There are two basic types of title insurance protection.  One for the mortgage lender and one for the homeowner or real estate investor.

If a mortgage is to be placed on your new home, the mortgage lender will probably require that you purchase title insurance to protect the institution's position as a holder of a mortgage loan.  But this mortgagee's title insurance policy doesn't protect you, the homeowner.  You need an owner's title insurance policy to protect your investment.

You pay only once.  There are no renewal premiums, and there is no expiration date on the policy.  Yet the protection lasts as long as you, or your heirs, retain an interest in the property.

A SMALL COST FOR YEARS OF PROTECTION

The real estate you own represents stability, permanence and the hope of the future.  Don't take a chance and let your property be taken from you because of a flaw in the title.  It makes good sense, for the relatively small amount it costs, to protect yourself with title insurance.