For most people, buying a home constitutes one of the biggest monetary investments of their lives. It’s important to choose a reliable title insurance company to help navigate the purchasing process and protect your financial interests. Title insurance is a critical aspect of home purchase proceedings. The title insurance process involves thoroughly researching public records to determine that the seller is the legitimate owner and has a clear title to transfer the property to the purchaser.
There are two types of title insurance: title insurance for lenders and title insurance for owners. If you are using a lending institution, you will be required to purchase lender title insurance. You are not required to purchase owner title insurance, but you should strongly consider it, in order to protect yourself and your financial interests. While the title review process involves in-depth searches of records related to a property title, it is possible that hidden title defects exist. These defects may occur due to undetected fraud, legal errors, or incorrect information appearing in public records. Hidden title defects can put your claim as the owner of a property at risk.
An owner’s title insurance policy protects you from claims against the title and losses arising from:
- Mistaken interpretations of wills and trusts
- Deeds executed under false powers of attorney
- Incorrect representation of marital status
- Federal, state inheritance, and gift tax liens
- Errors in tax records
- Discovery of later will after probate of the first will
- Easements not discovered by a survey (if policy includes survey coverage)
- Other hidden title defects
Buyers often select the title company recommended by their real estate agent or attorney but are not required to do so. Whether you’ve been referred to Hillsboro Title by a professional or are choosing a title insurance company on your own, we’re here to help. Let us put our skills to use to ensure that you are fully protected while purchasing your home and for as long as you own the property. Want to know more? Contact us here.