Title Insurance for Your Peace of Mind
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Buying a home may be the largest investment you make in your life. So before you commit to the transaction, you want to be certain that the property's title is clear of other claims.
A title company does all the research to insure that a property has clear title. Making sure that a property is clear of all legal encumbrances is the job of a title insurance company.
You pay the title insurance company a single premium which includes the cost of verifying clear title and covers you in case some fault is later discovered in the title.
The title insurance company searches the title history of the property. Through its research, the title insurance company can almost always find any title problems that may arise and clear up these problems before you close on the property.
Because Real Estate Law is so complex, you need an expert to make sure that all previous transactions have been correct, so you don't end up with legal problems or a problem with the title to your property. Your owner's policy will describe the property and outline any recorded limitations on your ownership. It will also cover what the title insurance company is responsible for. Title insurance usually covers:
- Contested title — Someone, usually a previous owner or occupant, claims they still own the property or have not given up their claim. In this case, the title company will defend the title and will cost you nothing.
- Defective title — This is a general term for a legal problem with the title that cannot be corrected and includes "contested title" above. Defects are rare, but they can be very difficult, making the property inaccessible, unable to be built, or unsaleable. Many other complex problems define "Defective title." The title company will find these problems, or if they miss them, protect you from financial loss - up to the amount of the policy.
At Pinnacle Lending Group, Inc., we answer questions about this process every day. Call us: (702) 730-2085.