Title Insurance

Purchasing a home, whether a primary residence or a vacation home, is usually one of the largest investments made during a lifetime. Before you close on such a significant investment, you want to be certain that you are protected from potential loss.

One of the least understood yet most important aspects of protecting a real estate investment is making sure that the title to the property is secure. When purchasing real estate, you not only purchase the actual buildings or land, but the title to the property, the right to exclusively own, occupy and use the space. These rights may be limited by rights and claims asserted by others, which may limit your use and enjoyment of the property and even bring financial loss. To be certain that your property is not at risk to these types of issues it is important to acquire a title insurance policy. This is why more than 90% of all real estate transactions including real estate loans in the United States include title insurance.

What is a title insurance

Prior to the closing of a real estate transaction, an attorney or other professional will search the public land records. This search provides a summary of the known issues or defects affecting the title to the real property. Typically, these searches provide information, but not an absolute guaranty that the title is clear of all defects. However, a title insurance policy does provide a financially backed indemnity as to the legal status of title. By definition a title insurance policy is a private contract of indemnity between a purchaser or lender and a title insurance company protecting the insured from issues that may adversely affect the title to their insured property. These issues include liens, encumbrances, fraud, hidden heirs, improperly executed documents, undetected easements and many other defects..

With a title insurance policy, the substantial financial resources of a title insurance company stand behind your title and offer real peace of mind. One of the most significant benefits of the title policy is that the title company will undertake to defend and or clear any claims covered by the policy, including covering the cost of all related attorneys/legal fees. In the event of a legitimate claim, the title company will pay or settle with the claimant, up to face amount of the policy. Just like title insurance purchased in the United States, the title insurance policy is purchased for a one time premium, and once purchased, the policy protects you as long as you have an interest in the property.