Title Insurance Protects Your Financial Investment

You purchase homeowners insurance to protect yourself financially in case something happens to your property or its contents. However homeowners insurance won't protect your financial interests if a matter arises regarding past ownership of your property. That is where title insurance comes in.

Only the title to the land and not the land itself can be purchased. So, unless a homeowner possesses a clear title, he or she risks losing his/her home and the land under it. Title insurance guarantees the title as reported.

Actually there are two types of title insurance: lender policy and the owner's title insurance. Most lenders require a loan policy when they issue you a loan to protect their interest (the amount they loaned you) should a problem arise. The policy amount decreases each year and eventually disappears once the loan is paid off. Therefore the owner should also have title insurance to protect his/her financial interest. Only owner's title insurance fully protects the buyer. Should hidden defects surface at any time challenging an owner's rights, the title company will defend the title, in court, if necessary, and cover the owner's losses up to the full value of the policy.

But before title insurance is issued, the title company (or attorney, depending on the local practices and laws) performs a title search. A title search involves searching public land records to ascertain if the seller has the legal right to sell the property.

The title company will: conduct a chain of title, which is a review of the owner history of the property, checking for who purchased the property, who sold it, and when; perform a tax search to verify the present status of taxes; conduct a judgment search to determine whether there are any general liens against the property; and, sometimes even, conduct on-site inspections to verify lot size, the location of improvements, and evidence of unrecorded easements.

According to the American Land Title Association, 25 percent of title searches find a title problem that is fixed before the insurance is issued. At this point, you may be wondering why you even need insurance following an exhaustive title search. Unfortunately, it's nearly impossible to guarantee a title is clear of hidden defects-those circumstances that could find you in a tug of war over the property. Examples of hidden defects include mistakes in interpretation of wills and other legal documents, liens for unpaid estate or inheritance taxes, deeds by persons of unsound mind, impersonation of the real owner, forgery, missing or undisclosed heirs, falsification of records, and confusion stemming from similar names.

Your home is probably one of your largest investments. For a one-time premium, you can have peace of mind for as long as you or your heirs retain the property. Talk with your real estate professional for more information on title insurance and selecting a title company.

Neda Dabestani-Ryba is a Realtor in Maryland. She is a member of the President's Circle of Top Real Estate Professionals. She can be reached at (800) 536-3806 or visit her website for more information: http://neda.dabestani.pcragent.com/. Prudential Carruthers REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

In The News:


pen paper and inkwell


cat break through


A Singles Game of Real Estate

This discussion leans toward answering questions asked most often by... Read More

Do I Have To Buy Real Estate Through An Agent?

Sometimes when we are very busy professionals and very rich... Read More

Make Money With Room Rentals

I don't know why I didn't do it sooner, but... Read More

Secrets of Making Money from Real Estate - Part 2

Leverage: With real estate, people and companies will lend you... Read More

U.S. Real Estate Sought By Foreign Investors Due to a Weaker Dollar

The weak US dollar has been good news for real... Read More

How I Became a Real Estate Investor

Recently I closed on the sale of two homes. They... Read More

What We Do To Sell Your Property!

Once you have contracted us to sell your property we... Read More

Yes But, How Do I Evaluate Buying Undeveloped Land And Get Into The Business?

These real questions on buying undeveloped land are answered by... Read More

Should You Buy Real Estate Now

I have been seeing the market on fire for a... Read More

Property Investing Secrets 4

Property Investing Secrets:How to Sell to 100% of the Market... Read More

Home Selling: How To Set The Right Asking Price

Many homes remain unsold for a long time because they're... Read More

Investing in Real Estate & REITs

Real estate investing runs the gamut in terms of risk... Read More

Get To Know About Building Codes & Town Planning Applications, If You Want To Build A House

These are real building questions that I received from readers... Read More

San Diego Real Estate, Million Dollar Homes

San Diego county has always been known for its Luxury... Read More

Cashing Out of Preforeclosures - Exit Strategies for Maximum Profit

One of the quickest ways to real estate profits is... Read More

Prepare Your Property Like A Pro And Boost Profits

The housing market is hot, and you've decided to list... Read More

Property Investing - Am I Buying for Profit or Prestige?

All of us have emotional preconceptions and assumptions. They are... Read More

How to Buy Fixers for Profit

Do you dream of becoming a multi-millionaire real estate investor?... Read More

How to Create Cash Flow Out of Thin Air!

Want to see a trick every real estate investor will... Read More

Use Targeted Decorating To Get A Higher Price For Your House

This article will show you how to sell your home... Read More

Purchasing International Real Estate

Interested in investing somewhere other than your back yard?Management companies... Read More

Pricing your House to Sell

Most Sellers set their initial asking price at an amount... Read More

Utah Real Estate

Looking to buy real estate in Utah? The market has... Read More

Find the Right Apartment Quickly and Easily Using an Apartment Locator Service

You've probably seen the ads or heard about apartment locators.... Read More

If Your House Is a Mess, You Dont Have To Sell For Less

Don't be tempted by "We Buy Houses" or "Sell Your... Read More

Successful Real Estate Investing

One of the best roads to wealth in America has... Read More

Eight Out of Ten Millionaires Surveyed Made their Fortune in Real Estate - How?

Consider the statistic in the title for a moment.8/10 millionaires... Read More

Real Estate Investing - The Motivated Seller

How the heck do you find a "motivated seller?"The motivated... Read More

Planning for Real Estate with Estate Planning

One of the most important considerations you will need to... Read More

Becoming A Battle Hardened Real Estate Veteran Without All The Scars

Step 1 is always to determine the fair market value(FMV).... Read More

Working With Your Real Estate Attorney

Purchasing or selling a home will probably be one of... Read More

The Person With The Most Money Wins!

More money can mean better:- Health Care - Relaxing... Read More

A Powerful Suggested Technique for YOUR Home & Property Search

A Powerful Suggested Technique for YOUR Home & Property Search... Read More