Frequently Asked Questions

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Frequently Asked Question

What is Title Insurance?

There are two types of title insurance, and both are designed to protect againts losses arising through defects in title to real estate. The title insurance company agrees to provide the policy holder a legal defense if a claim againts clear title arises.

1.Owner's title insurance protects purchasers of real estate againts title defects that may exist againts the property.

2.Lender's or mortgagee's, title insurance insures the lender as to the priority of its mortgage lien, protecting againts other
mortgages, liens, or judgements recorded prior to their mortgage.

What are the examples of title defects?

There are several defects that a title insurance policty may protect againts, some a matter of public record and some hidden, such as:

False Affidavits
Forgeries
Improperly Indexed Documents
Judgements
Liens
Missing or Unknown heirs
Unpaid Taxes
Unsatisfied Mortgages

What is a Title Commitment?

Is a precursor to a title insurance policy in that it discloses the current ownership, easements, restrictions and liens relating to a particular property or its owner, and what documents or other measures must be taken to assure a clean title.

Does the Property Buyer Need Title Insurance?

Owner's title insurance is never mandatory, but it would be foolhardy to purchase real estate without the protection title insurance affords. A real estate acquisition is often a family's most significant asset. A claim against their title could reder that.

What Does a Title Insurance Policy Cover?

A title insurance policy protects against documents that do not appear in public records, such as prior deeds, liens, judgements, or documents that were missed by the title examiner. Title insurance may also protect against encroachments that do not appear on a survey of the property.