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What
is a title?
What
is title insurance?
What
is a title search?
How
does title insurance protect my investment?
What
problems can a title search reveal?
Are
there problems that a title search cannot reveal?
How
much could I lose if a claim is filed against my property?
The
owner of the property has a deed. Isn't that proof of ownership?
What
about an attorney's opinion?
The
previous owner had a search six months ago. Why do I need
another one?
The
builder of my home has title insurance, why do I need it when I
purchase the land from him?
Are
there different types of title insurance policies?
How
much does title insurance cost?
How
long does my coverage last?
Where
can I get title insurance?
What
is a title?
A title is the foundation
of property ownership. It is the owner's right to possess and use
that property within certain limitations.
What
is title insurance?
Title insurance is your policy of
protection against loss if any of these problems-even a hidden
hazard-results in a claim against your ownership.
What
is a title search?
A title search is a detailed
examination of the historical records concerning a property. These
records include deeds, court records, property and name indexes
and many other documents. The purpose of the search is to verify
the seller's right to transfer of ownership and to discover any
claims, defects and other rights or burdens on the property.
How
does title insurance protect my investment?
If a claim is made against your
property, title insurance will, in accordance with the terms of
your policy, assure you of a legal defense and pay all court costs
and related fees.
What
problems can a title search reveal?
A title search can show a number of
title defects and liens, as well as other encumbrances and
restrictions. Among these are unpaid taxes, unsatisfied mortgages,
judgements against the seller and restrictions limiting the use of
the land.
Are
there problems that a title search cannot reveal?
Yes. There are some hidden hazards
that even the most diligent title search may never reveal. For
instance, the previous owner could have incorrectly stated his/her
marital status, resulting in a possible claim by his legal spouse.
Other hidden hazards include fraud, forgery, defective deeds,
mental incompetence, confusion due to similar or identical names
and clerical errors in the records. These defects can arise after
you've purchased your home and jeopardize your right to ownership.
How
much could I lose if a claim is filed against my property?
That depends on the claim. In an
extreme case, you could lose your entire home and property and
still be liable to pay off the balance of your mortgage. Most
claims aren't that dramatic, but even the smallest claim can cost
you money, time and aggravation and you'll still have to pay costs
for a legal defense.
The
owner of the property has a deed. Isn't that proof of ownership?
Not necessarily. A deed is just a
document by which the right of ownership in land is transferred,
whatever that right may be. It is not proof of ownership, and it
doesn't do away with rights others may have in the property. In
addition, a deed won't show you liens or claims that may be
outstanding against the title.
What
about an attorney's opinion?
An attorney's opinion is based on a
search of the public records. So, once again, even the most
exhaustive search os these records may not reveal everything. It's
also important to remember that an attorney is not liable if you
should suffer loss because of hidden hazards in the title.
The
previous owner had a search six months ago. Why do I need
another one?
Because the owner could, in a very
short time, do many things to encumber the title. For example, he
could grant easements or construct improvements which encroach on
adjacent property. He could get married or divorced or have a lien
filed against the property. It is necessary to conduct an
up-to-date title search to uncover any such problems.
The
builder of my home has title insurance, why do I need it when I
purchase the land from him?
A title policy insuring the builder
does not protect you. A great many things could have happened to
the land since the builder's policy was issued. Liens, judgments
and unpaid taxes for which prior owners were responsible may be
disclosed after you purchase the property, causing you aggravation
and costing you money.
Are
there different types of title insurance policies?
Yes. Basically there are two different
types of policies, a lender's policy and an owner's policy. The
lender's policy protects the lender's interest in the property as
security for the outstanding balance under the buyer's mortgage.
The owner's policy safeguards the buyer's investment or equity in
the property up to the face amount of the policy. Title insurers
in many states offer increased policy coverage through inflation
endorsements to cover increases in value due to inflation.
How
much does title insurance cost?
Probably less than you think. Charges
vary in different sections of the country, but generally the cost
of title insurance (including search, examination and related
services) amounts to about one percent, or less, of the cost of
the property. Unlike other insurance premiums which must be paid
annually, a title insurance premium is paid one time only, usually
at settlement.
How
long does my coverage last?
For as long as you or your heirs
retain an interest in the property.
Where
can I get title insurance?
From Integrity Land Title. When
selecting a title insurer, it is important that you look for a
company with expertise and experience, as well as the financial
strength to protect you should a claim arise.
We are a title insurance company
based in Palm Beach County, Florida, and operating throughout the
United States.
Call (561)
684-6262 or (877) 429-1398 for a complimentary, no-obligation
title insurance analysis.
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