Keep Your Home:Title Company
Purchasing your home is an important decision. But how does one know that the property they purchased has a clear title? Because unknown problems can be hidden in the history of a property’s title, homeowners pay a title insurance company for title insurance.
Title insurance companies provide title insurance. Title insurance is an insurance policy that guarantees the property title is free from the problems of hidden liens and claims. The title insurance company searches public records for the property to make sure there are no problems in the title’s ownership and history. The fee for title insurance is usually included in the itemization of closing costs from the lender and is a one-time fee. Possible hidden title problems your title insurance company may find can include:
Errors or omissions in deeds
Mistakes in examining records
Forgery
Undisclosed heirs
Liens for unpaid taxes
Liens by contractors
Title insurance pays for title companies to search for problems in a property’s title by examining public records. Title insurance companies routinely search public records for:
Deeds
Mortgages
Wills
Divorce Decrees
Court Judgements
Tax Records
Liens
Claims
Maps
By searching the history of the property’s title, the title insurance company can assure the new owner of clear ownership to their new property and that no outstanding debts or unknown ownership issues are associated with their new home.
In addition, besides securing a good search on a property’s title, the title insurance company will insure the property owner as long as s/he owns the property. Therefore, if a problem arises at a later date, the title insurance policy will cover legal fees in defense of a claim against the property that is covered under the title policy.
Think you have to settle for whatever title insurance company your lender puts in your closing papers? Not true! You have the right to choose your title insurance company. Take a look at Shopping for Title Insurance to find tips and information on how to shop around and save when purchasing your next property’s title insurance policy.
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