What is Title Insurance?
Title insurance offers protection against financial loss from problems with the title that came up before you purchased the property. It is purchased by residential or commercial property owners to protect themselves from unknown or undisclosed issues with title to their real estate. The property you purchase and the land it sits on may have been through several owners, so insurers search for any issues regarding the property before closing. If anything comes up after closing, title insurance covers those problems. Title insurance can also be an attractive offer from a seller to potential purchasers.
What Does Title Insurance Protect?
Title insurance covers a variety of issues, including the following:
- A lien from a previous owner’s failed payment on a mortgage, deed of trust, special assessment, judgment or tax
- A non-consensual labor and materials lien from a contractor
- Undisclosed leases, contracts, or options on your land
- Restrictive covenants and easements affecting your property that were not disclosed to you
- A deed that was improperly notarized, delivered, signed or recorded in error
- A deed that is invalid due to forgery, fraud, invalid power of attorney or a signature provided under duress or legal incompetence
- A deed signed by only one spouse in a common law marriage
- A title defect due to an improper prior foreclosure of the property
- Ownership claims by undisclosed or missing heirs
- A deed signed by a defunct corporation or one lacking proper authority
Where Do I Begin?
The title process can be lengthy and daunting , so an attorney who is very familiar with title insurance can review title searches and examine policies. Title Insurance is a very affordable protection compared to other real estate transaction costs. Kepple Law Group, L.L.C., owns River City Title, LLC, which is licensed to provide title and escrow services and works with title insurance problems every day.