How To Understand Title Insurance

Frequently Asked Questions

A title insurance is a policy that protects the buyer and the seller against disagreements in property ownership. A title insurance is created in order for you to have rights and benefits for the property that you are buying. For property buyers a title insurance assures them that the seller’s title is clean. There are some common questions about title insurance that may arise.

Here are some of the frequently asked questions regarding title insurance:

  1. Why is title insurance needed? A title insurance allows you to enjoy the benefits that come with owning a property. This includes occupying the property as you wish and being free from the burden of debts and other pending penalties. The title insurance assures that you have all these rights when you purchase a property. It protects you from hidden defects in the public records of the property. You will not be held accountable if any charges against the property arises. A title insurance can be acquired from title insurance companies.
  2. What is a hidden defect? A hidden defect is an error that is found with the property. Hidden defects are not found in title searches and title services. They only arise in the event that someone claims there is a defect in the title. Some of the most common hidden defects are unpaid taxes that are recorded as paid, forgery of signatures, appearance of heirs from previous owners that have died, and fraud. A title insurance ensures that you get a defense attorney at no cost when these problems arise.
  3. What is a title search? A title search of the property is an evaluation of the public records pertaining to the property. This action can be done by a title agency. Some of the items that are found in the title search include the property ownership and rights of the owner on the property. This title search provides information based on the current owner of the property and dates back to 60 years, covering all the previous owners of the property. Each of the documents are examined in order to see if all the facts are accurate or if a policy is not followed.
  4. Is title insurance required? Title insurance is not bought by everyone. People who do not avail of a title insurance are rendered as a self-insurer. This means that they are responsible for taking care of defense costs when a problem on the property arises. They are the ones to pay for defense attorneys for court proceedings. They are also at risk in losing the property. People who do not avail of a title insurance usually have lots of money and are not too bothered in losing a property. Most people purchase a title insurance to be protected from these events.

These are some of the most frequently asked questions when it comes to title insurance. The cost of a title insurance depends on the value of the property that you have. In title insurance, you only have to pay once. The title insurance is carried over to your heirs in case you die. It is important that you have a title insurance for your property in order for you to have protection against unwanted events. 


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