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What is Title Insurance?
Fire insurance protects you against losses from fire. Collision insurance guards you against the cost of a damaged car. Theft insurance...well you get the idea.
Title insurance protects your title to real estate that you are about to acquire. To understand why title protection is essential, we need to consider real estate for a moment.
Real estate has always been considered our most valuable possession. It is so basic a form of wealth that many special laws have ben enacted to protect ownership of land and the buildings which stand on the land.
You should realize whenever you buy property that the owner who is selling it to you has extremely strong rights as do their family and heirs. Also, there may be others in addition to the owner who have "rights" in the property you are going to buy, perhaps governmental bodies, or contractors, for example.
Some of the things a title search uncovers are any unpaid taxes or mortgages, judgments against previous owners, easements, and many other court actions or recorded documents which can affect title to real estate.
Common Questions include:
Q. As a homeowner what protection do I have on the mortgagee's title insurance?
A. The mortgagee's title insurance policy purchased by you for the lender protects only the lender from title defects. An additional home owner's title policy is highly recommended for your personal protection.
Q. What is a Statement of Information?
A. Statements of Information provide title companies with the information they need to distinguish the buyers and sellers of real property from others with similar names. After identifying the true buyers and sellers, title companies may disregard the judgments, liens or other matters on the public records under similar names.
Q. What will I need to bring with me to the Title Company when I go to sign my papers?
A.If you need money to close your escrow, you will need to bring your cashier's check, a valid driver's license, State I. D. or valid passport or Military I. D.
Q. What is Deed of Reconveyance?
A. A deed of Reconveyance is a recordable document issued by your previous lender in conjunction with the pay-off of your loan. This document is recorded at the county recorders office and shows that the mortgage in your name has been released from the property and paid in full.