Why is Title Insurance a necessity?
When a contract purchaser buys a home, the homeowner wants to be certain that the title to the
land is clear. But even the most diligent search of the public records could fail to disclose a
number of title defects. Just a few of the problems that can suddenly surface are:
· a forged will or deed;
· a title transfer by someone underage;
· a married person conveying real estate without his or her spouse;
· fraudulent impersonations;
· secret marriages;
· undisclosed heirs;
· invalid divorces; and
· false affidavits.
Without an owners title insurance policy, you may not be fully protected against errors in the
public records, hidden defects not disclosed by the public records, or mistakes made during the
examination of the title of your new property. As a result, you may be held fully accountable
for any liens, judgements or claims brought against your new property. However, your owners
title policy insures that if such an occasion arises, you will be defended, free of charge against all
covered claims and paid up to the amount of the policy to settle valid claims.
Why do I need Title Insurance?
Title insurance is a one-time charge assessed at settlement that protects a homebuyer in the
event that the property title, which proves ownership, is flawed. Problems with the title can
include outstanding mortgages or liens; easements; inaccurate notary acknowledgments; and
deeds, wills, or trusts that contain wrong names or improper vestings. Title companies offer
two kinds of policies - the 1992 ALTA (American Land Title Association) or the newer ALTA
policy. The difference between the two is based on pre-purchase problems, such as a deck
addition that was erected without a proper building permit, and post-purchase problems. While
the older policy would not cover such a problem, the new ALTA policy does. While it is more
comprehensive than the old one, it also costs about 20 percent more. It has become common for
title companies to automatically assume homeowners want the more comprehensive and more
expensive coverage, but buyers do have a choice. In fact, title insurance is not required by law.
However, many lenders will not provide a mortgage without it. The cost varies based on the
value of the property.
What is the difference between a Lender's Policy and an Owner's Policy?
A lender's policy protects the mortgage holder (the institution that owns your
mortgage). If there is a fault in title that results in a loss, the mortgage holder will be paid back.
An Owner's policy protects you, the homebuyer, against a loss that may occur from a fault in
your ownership or interest you have in the property. A title policy will protect the equity in
your new home. Compare coverage and pricing for different title policies; a "Standard" Title
Policy and the "Advanced" Title Policy.
What are some examples that a Title Policy would guard against?
- False impersonation of the true owner of the property by the seller or other persons
previously in title - Forged deeds, releases and other documents
- Deeds by persons of unsound mind
- Deeds by minors
- Invalid documents completed by an expired attorney
- Invalid deeds delivered after the death of the grantor
- Deeds by supposedly single persons but actually married
- Fraud
- Claims for unpaid estate inheritance and gift taxes against prior owners of your home
- Unrecorded easements - giving one party the right to enter another party's property
- Undisclosed descendants of former owners of your home or the land on which it is
situated
| “Owners Title Insurance is a one time purchase protecting one of the largest investments you will ever make (your home) for the entire time you own the home." |
DKS Settlement Group, LLC
Title Insurance
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| From Your Loan to Your Home We Are With You Every Step of The Way. |
| From Your Loan to Your Home We Are With You Every Step of The Way. |