Real estate transactions are often complex. Our title insurance attorneys & closing agents are happy to answer any questions you may have about the role of title insurance in your property closing. We’ve listed our most FAQ from clients with answers below.
FAQ: What is title insurance and why do I need it?
A: Title insurance is insurance against losses resulting in defects, liens or other encumbrances to the title for a property. Without protection against such occurrences, you can find yourself burdened with financial loss that may be unexpected.
FAQ: What types of defects are most common?
A: Title insurance can protect you in the times when it is later discovered that the property you have purchased was not legally available for sale. The writer of the insurance policy researches the title to see if the parties interested in selling the property have the legal right to do so.
FAQ: Is a “title search” basically a detailed look into the historical records of a property?
A: Yes, this is done in order to review all documents pertaining to the status of the property and its suitability for transfer.
FAQ: But if a title search is completed and appears 100% correct, why would I need title insurance?
A: Even if everything in the title appears correct, title insurance can protect you from the defects that are not readily apparent in a completed title search. Clerical errors in property documents can mistakenly hide defects to the property that can later come back to damage it’s value, causing you to lose money. Other defects could result from fraud and forgery, defective deeds, mental incompetence, or something as simple as confusion due to similar last names.
FAQ: When do I purchase title insurance and how long does it last?
A: Title insurance is purchased and goes into effect as soon as the act of sale on a property is completed and typically lasts as long as you or your heirs hold an interest in the property.
FAQ: How often do I have to pay premiums for title insurance?
A: Unlike other forms of insurance, title insurance only requires that you pay a one-time premium.
FAQ: What type of coverage is available?
A: Several items can be included or excluded from your policy. Actual Title will work with you to secure a tailored set of coverage to suit your individual needs. Rest assured that there are various forms of standard endorsements to cover the issues pertinent to your property.