Answer: Title insurance is not like other forms of insurance. It does not insure against some casualty which may occur in the future, such as auto, homeowner's, or health insurance. Title insurance protects the holder of the policy against things which might have occured in the past; liens which were never paid off, mortgages which were never satisfied, deeds which were not signed by all parties with a vested interest in the property.

Technically speaking, title insurance is a policy of insurance that guarantees to the holder of the policy that there are no claims against the ownership of the insured property as of the effetive date of the policy other than those exceptions listed whitin the policy.

A real estate title is the right to own, use, and possess that property - it is the foundation of property ownership. A policy of title insurance provides protection to the insured should any claims be made against that right of ownership.

When ownership of a property is being transferred, it is customary for the Seller to provide to the Buyer a policy of title insurance, guaranteeing to the Buyer that the ownership is being transferred free of known defects and encumbrances.

To more fully understand title insurance, think about buying a property without it. How would you be sure that the mortgage was going to be paid off? How would you know that there weren't other mortgages, or that the taxes from previous years had been paid? How would you know that there were no judgements against the Seller that had atttached to the property or that the swimming pool was not located in an easement?

These can be investigated, and that's what a Title Search And Examination is: it is a search of the public records to uncover information about the property. It's the first thing a title company does in the process of issuing a title policy.

Once the search and examination are complete, we issue a Commitment for Title Insurance. The commitment describes everything that was uncovered in the title search, and is a binder, promising to issue a title insurance policy when the requirements stated in the commitment are met. The requirements will include such things as recording a properly executed deed from the current owners, payoff and recording the satisfaction of the current mortgage, etc.

The actual Policy of Title Insurance is issued after the recording of required documents. It guarantees to the new owner that all of the conditions stated in the Commitment have been met. But it does more. It also gives the owner a guarantee that there are no other "hidden" encumbrances against the title. Unless it is stated as an exception to the policy, the holder of the policy is insured that there are no recorded liens or encumbrances on the property.

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Answer: Because land is permanent and can have many owners over the years, various rights in land (such as mineral, air, or utility rights) may have been acquired by others by the time you come into possession of it, even if the land has never before been built upon. So in order to transfer a clear title to a piece of land, it is first necessary to determine whether any rights are outstanding.

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Answer: The cost is directly related to the value of the property. The higher the value, the more coverage is needed. The premium is small compared to the total purchase price. The premium is paid only once and remains in force for as long as the property is owned by the insured and continues to protect the insured on warranties after it is sold. See the rates section of our website for specifics.

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Answer: For as long as you or your heirs retain an interest in the property and, in some cases, even beyond.

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Answer: If a claim is made against your property, title insurance will, in accordance with the terms of your policy, assure you of a legal defense - and pay all court costs and related fees. Also, if the claim proves valid, you will be reimbursed for your actual loss up to the face amount of the policy.

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Answer: If a lender has title insurance protection and you don't, what possible danger of loss can you face?

As an example, let's say you've bought a home for $150,000. You've made a $30,000 down payment, and your lender holds an $120,000 mortgage lien or beneficial interest. Your lender has title insurance coverage protecting his interest up to $120,000.

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Answer: The loan policy protects the lender against loss due to unknown title defects. It also protects the lender's interest from certain matters which may exist but may not be known at the time of sale.

This policy only protects the lender's interest. It does not protect you. That's why you need an owner's policy, which can be issued at the same time as the loan policy for a nominal one-time fee.

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Answer:The title insurance company would only defend and protect the interest of the lender. You would have to assume the financial burden of your own legal defense. If your defense is not successful, the result could be a total loss of title.

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Answer: A title search can show a number of title defects and liens, as well as other encumbrances and restrictions. Among these are unpaid taxes, unsatisfied mortgages, judgements against the seller and restrictions limiting the use of the land.

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Answer: Yes. There are some hidden hazards that even the most diligent title search may never reveal. For instance, the previous owner could have incorrectly stated his or her marital status, resulting in a possible claim by a legal spouse. Other hidden hazards include fraud and forgery, defective deeds, mental incompetence, confusion due to similar or identical names and clerical errors in the records. These defects can arise after you've purchased your home and can jeopardize your right to ownership.

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Answer: A title policy insuring the builder does not protect you. Also, a great many things could have happened to the land since the builder's policy was issued. Liens, judgments and unpaid taxes for which prior owners were responsible may be disclosed after you purchase the property - causing you aggravation and costing you money.