Purchasing a home or other real estate property is no small deal. Title insurance is there to protect the insured from all the possible what ifs out there. When dealing with real property, the historical chain of title can only tell so much information, but it can’t account for surprises. There are scenarios in which the buyer’s or lender’s interest in the property is threatened. If something does arise, you’ll be thankful for the protection your title insurance provides.
What Does Title Insurance Cover?
There are many things title insurance protects the property owner from, it is worth the peace of mind and investment in protection. The following are some things associated with your property’s past ownership that issues could arise on after the purchase, potentially causing huge financial stress if you’re not properly insured:
- Another person owns an interest in your title
- Another person has rights affecting your title arising out of leases, contracts or options
- Another person claims to have rights affecting your title arising out of forgery
- Another person has an easement on the land
- Another person has a recorded right to limit your use of the land
- Another person has a recorded lien or encumbrance on your title
- The true owner of the property has been falsely impersonated
- A deed, release or will has been forged
- Instruments executed under invalid or expired power of attorney
- Undisclosed or missing heirs
- Recording errors on legal documents
- Misinterpretation of a will
- Deeds by persons of unsound mind
- Deeds by minors
- Deeds by persons supposedly single, but in fact married
- Unmarketable title
- No right of access to and from the land
- Issues arising in the gap period between the effective date of the policy and the recording of the deed
- A document upon which your title is based is invalid because it was not properly signed, sealed, acknowledged, delivered, or recorded
This is the reason all lenders require borrowers to purchase a lender’s title insurance policy. But some buyers don’t know that they, too, are offered coverage themselves with an owner’s title insurance policy. Breaks or issues in the chain of title from the past aren’t just a threat to your lender’s interest in the property, but to you as the owner. If you’re not sure if you’ve elected for an owner’s title insurance policy, please contact your Processor or Closer.
Lenders and buyers both have lots of reasons to want to work with Liberty Title for closing, title insurance, and escrow services. We do things differently than a lot of other title companies. Our structure isn’t focused around individual closers or other employees and what they can do – we all work as a team with a strong client-focus and the customers best interest in mind. We strive to do what we do well so that all parties involved in transactions in our offices feel taken care of and secure.