Frequently Asked Questions
Basically, it protects the insured from losses as the result of claims on one’s ownership of land. For instance, a seller may forge a signature of another, creating a loss for a new owner. Other problems that can occur include: Fraud; Improper Court Proceedings; Recording Mistakes; Missing Heirs; Unfiled Liens; Incompetency of Previous Sellers.
Probably one of the most comforting features of title insurance is the obligation of the insurer to defend you against claims of others. A neighbor may claim rights to a portion of your land. Without title insurance, you would have to bear the cost of settling this dispute through the courts, regardless of the validity of the claim.
There are two basic forms of title insurance – an Owners Policy and a Loan Policy. As the names indicate, the Owner’s Policy covers the landowner and the Loan Policy covers the lender on a particular parcel of real estate.
A Loan Policy offers no protection to landowner. A claim may arise that does not jeopardize the lender’s interest, but may cause a great loss to the owner. An example would be the one outlined earlier, when a neighbor claims rights in your land.
In a word… forever. You and your heirs are protected for as long as you own the property, and in certain instances even after the property is sold.
Fees vary from state-to-state, but in all cases it is a one-time cost that doesn’t have to be renewed like other forms of insurance. (Refer to the Fees page for specific costs)