Title Insurance
Title insurance is to protect anyone who purchases a property from any individual or entity that might have a right, lien or claim to the property and before closing you would want to know this is scrutinize and to establish that your rights and interests to the property are clear is the business of a Title Insurance Company.
The Title Insurance Company will charge you for this protection at closing a very reasonable, one-time title insurance premium, for this minimal amount you will continuous receive title insurance protection in the amount equal to the purchase price you paid for the property or its current market value. This premium typically includes your “owners” policy and in addition a “lenders” policy as well will have to be issued.
One of the advantages of title insurance is that prior to issuing a policy, the title insurance company performs an extensive research into pertinent public records, maps and documents to trace prior ownership of the property and establish if anyone else besides you has an interest in the property. Through its research, the title insurance company can generally pinpoint any title issues that may arise and have these problems cleared-up prior to closing.
Your Owners Title insurance Policy will describe the property and recorded limitations if any of your ownership. It will also express their responsibilities any claim covered by the policy terms should arise. In general your title insurance will protect you from loss:
If any person or entity at any time contest your title in legal action. The Title Insurance Company will at no cost to you defend the title.
If a title defect should arise that cannot be abolished, you will be protected from loss up to the amount of the policy by the title insurance company.