What is Title Insurance?
Title Insurance safeguards against loss that may arise
from hazards and defects that already exist and affect
your legal claim to the property you are buying. Title
Insurance protects the insured against items such as:
ERRORS – Documents that are misindexed in the public records
due to a clerical mistake or documents misplaced before
being properly recorded.
UNKNOWN HEIRS – Legitimate heirs that may have been overlooked
in the probate process or an heir thought to be deceased
who may have a claim to interest in the property.
FORGERY – Forged deeds, releases of mortgages and other
documents in the public records.
FRAUD – Deeds made by persons claiming to be single but
in fact married or by individuals falsely impersonating
the true owner.
EASEMENTS – Unrecorded easements that provide access for
construction of roads or utility lines at a later date.
There are two types of title policies available; lenders
and owners. Lenders requires the homebuyer to purchase
a lender's policy, as it secures the lender's interest.
An Owner's policy is available, which covers the homebuyer's
financial interest.
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