Protecting Your Investment
Buying a new home is one of life's most gratifying experiences. As you approach the big day of closing, however, all the details can be a little overwhelming. You might easily overlook the single most important step in the entire process—the purchase of title insurance on that wonderful new home.
You have just settled into your wonderful new home. It was difficult making the down payment, and you had to dip into your savings to remodel the kitchen. Two months later, your new kitchen is complete and all the boxes are finally unpacked. Suddenly you learn that a child born after the date of the seller's will is claiming his interest in your property. After an exhausting, expensive legal battle, the claim is found to be valid. You lose your home, your down payment and all the money you invested in the remodeling.
Unfortunately, nightmares like this can and do happen. But there is a way to protect yourself from such calamities. Owner's title insurance not only protects you, but your heirs for as long as they own the property, from financial loss caused by title problems. Your title insurer even agrees to bear the full cost of defending you against such claims.
A one-time premium provides all this coverage on the single largest investment you may ever make. Nothing else guarantees a home buyer's peace of mind quite like title insurance.
What is a title?
A title is the evidence, of right, that a person has to the ownership and possession of land. It is possible that someone other than the owner has a legal right to the property. If that right can be established, this person can claim the property outright or make demands on the owner as to its use.
What can make a title defective?
Even after the most meticulous search of public records, any number of problems can remain undisclosed that can make a title defective. These hidden "defects" are dangerous because you may not learn about them for many months, or even years. Yet they could force you to spend substantial sums on a legal defense, and still result in the loss of your property.
Title insurance protects against many defects, including:
- Creditor claims
- Deeds executed under false or expired powers of attorney
- Mistaken interpretations of wills and trusts
- Incorrect representation of marital status
- Undisclosed heirs
- Mistakes in recording legal documents
- Incorrect legal descriptions
- Forged deeds
- Tax liens
- Fraudulent deeds
- Probate issues
- Easements not discovered by survey
- and many others
Types of Title Insurance
Your lender will likely require that you purchase a Lender's Policy. This policy insures only that the financial institution has a valid, enforceable lien on the property. It does not protect you.
An Owner's Policy, on the other hand, is designed to protect you from title defects that existed prior to the issue date of your policy. It also covers the full cost of any legal defense of your title.
The one-time premium for an Owner's Policy is directly related to the value of your home. Paid when you purchase your home, it continues to provide complete coverage for as long as you or your heirs own the property.
A small price to pay for peace of mind.
Why Family Escrow & Title?
Your title insurance policy provides both peace of mind and wonderful financial protection. But that protection is only as strong as the issuing company itself. Family Escrow & Title is backed by one of the strongest underwriters in the business. Couple that with our years of proven experience in the title industry, and you can count on us to be here when you need us.
Come home to the friendly, knowledgeable service you deserve. Come home to peace of mind…Let our family take care of yours.