20 Reasons Title Insurance is Important

Talking about title insurance isn't the sexiest real estate topics out there. Title insurance doesn't have all the bells and whistles of fancy advertising nor does it have the attraction of a HGTV show. However, Title insurance is the behind-the-scene work horse that keeps property owners safe from liens, clouds, and false information that effect a property's possession and title transfer.

What does title insurance do? One word, protection.

During a title search many items can arise and a common item deals with names. Property owners or buyers are asked to complete a Statement of Identity to ensure claims are associated with the correct person(s) or not associated with a person. Another example is a construction lien. Say a person has a bathroom remodeled yet fails to pay for the completed work. The contractor may file a lien against the property to ensure financial remedy for the bathroom remodel.

20 Reasons Title Insurance is Important

1. Title insurance will protect you against a loss on your home or land due to a title defect.
2. A deed or mortgage in the chain of title may be a forgery.
3. Claims constantly arise due to marital status and validity of divorces.
4. A deed or mortgage may be been made by an incompetent or under age person.
5. A deed or mortgage made under an expired power of attorney may be void.
6. A dded or mortgage may have been made by a person with the same name as the owner.
7. A child born after the execution of a will may have interest in the property
8. Title transferred by an heir may be subject to a federal tax lien.
9. An heir of other person presumed dead may appear and recover the property or an interest.
10. A judgement regarding the title may be voidable because of some defect in the proceeding.
11. By insuring a title, you can eliminate delays when passing your title onto someone else.
12. Title insurance helps speed negotiations when you're ready to sell or obtain a loan.
13. Title insurance reimburses you for the amount of your covered loss.
14. A deed or mortgage may be voidable if signed while the grantor was in bankruptcy.
15. There may be a defect in the recording of a document upon which your title is dependent.
16. Many lawyers protect their clients as well as themselves by procuring title insurance.
17. A title policy is paid in full by the first premium for as long as you own the property.
18. A deed or mortgage may have been produced by fraud or duress.
19. Claims may have risen dramatically over the last 30 years.
20. Title insurance covers attorney fees and court costs.

When purchasing a property or refinancing a home loans title insurance is always involved whether a person wants it or not. Its a level of protection for property owners, buyers, and sellers.