WHAT IS TITLE INSURANCE?

Title insurance plays a major role in making certain home ownership is safe and secure. The title insurance policy protects against loss due to any defect in title, and in the event any problems should arise, it's the title company's obligation to provide legal support. A reputable title insurance agency offers reliable purchasing information, insight into historic matters of importance, and the security of a state licensed company.

Unlike most material purchases, paying money for real estate and receiving a deed to property does not assure the buyer of a free and clear title. According to real property laws, once settlement is final, the buyer is financially responsible for any valid claims made against the property. This means that any unsettled matters involving the property and past owners become the current owner=s problem. For example, the property title may have been transferred by a minor or someone who was legally incompetent. The possibilities are endless. However, title insurance assures you that your investment is secure.

One of the title insurance agency=s main functions is to secure a thorough title search of the property, which is a review of all matters affecting the state of ownership. The search also reveals tax information, rights of ways for power companies, and any unsatisfied liens or claims against the property. However, sometimes the most careful investigation fails to disclose title defects. For this reason, buyers purchase title insurance to protect themselves and their mortgage company. Title insurance is actually a package of two separate policies, one covering the buyer and the other covering the lender.