Why you need Title Insurance
When you purchase your home, how can you be sure that there are no problems with the home's title and that the seller really owns the property? Problems with the title can limit your use and enjoyment of the property, as well as bring financial loss. That is what a title search and title insurance are for.
Owner's Title Insurance, called an Owner's Policy, is purchased for a one-time fee at closing and lasts for as long as you or your heirs have an interest in the property. Only an Owner's Policy fully protects the buyer should a covered title problem arise with the title that was not found during the title search. Possible title problems can include, but are not limited to:
- Liens (or claims) asserted by others (including creditors of prior owners)
- Unreported tax bills
- Physical or legal encroachments on your property
- Ownership interests vested in others (such as missing or unknown heirs of prior owners)
- Mechanic and material-man’s liens – liens which are filed by contractors and suppliers who have furnished labor and materials for your property (these liens can be filed up to 90 days after the work is complete or materials have been furnished)
The additional cost to you for an Owner’s Title Insurance Policy in the amount of depends on the transaction. Please contact our office for a quote. Should you wish to purchaser Owner’s Title Insurance at a later date after closing the cost will be much greater. Unless you request otherwise, an Owner’s policy with enhanced coverages will be issued whenever possible.
(see limitations below*)
If you are uncertain as to whether you should obtain an Owner's Policy of Title Insurance, you are urged to seek independent advice. Defending your title in court against defects such as the ones listed above can result in the loss of your property if you lose and can be very costly even if you win.
* NOTE: FOR AN ENHANCED OWNERS POLICY TO BE ISSUED THE PROPERTY MUST MEET THE FOLLOWING CRITERIA:
The property to be insured must be a completed one-to-four family residential dwelling or condominium.
* NOTE: The enhanced owner’s policy is not available for unimproved property, commercial property, or residential property on which there is ongoing construction.
If the property to be insured involves newly constructed improvements, a final Certificate of Occupancy must be provided. The property to be insured must be platted (and the plat must be recorded), contain 25 acres or less, and have a valid street address.