Frequently Asked Questions (FAQ's)
What is Title Insurance?
Title insurance is an insurance policy that guarantees the property you are purchasing is free of undisclosed liens, confusion in the rights of ownership and other clouds on the title. It guarantees that you own the property for which you bargained -- protecting your investment.
How does Title Insurance protect my investment?
When you purchase a title insurance policy you are protected from these and a host of other hidden defects in title.
- Creditor Claims
- Deeds executed under false or expired powers of attorney.
- Mistaken interpretation of wills and trusts.
- Incorrect representation of marital status.
- Undisclosed heirs.
- Mistakes in recording legal documents.
- Incorrect legal descriptions.
- Forged deed, releases, etc.
- Federal, state inheritance and gift tax liens.
- Errors in tax records.
- Federal condemnation without notice filing.
- Capacity of foreign fiduciaries.
- Duress in execution of documents.
- Discovery from minors or non-existent entities.
- Discovery of later will after probate of first will.
Although title insurance cannot eliminate defects in title anymore that flood insurance can eliminate a flood, its does assure that you receive the best possible legal defense should your title be attacked. Should it fail you are reimbursed up to the face amount of the policy.
How much is Title Insurance?
A title insurance policy is issued in the amount equal to your purchase price. It is a ONE-TIME premium. There are no additional costs as long as ownership remains in your name or that of your heirs.