Title Insurance may be the ultimate protector of them all. The past can come back to haunt us – and that’s just what title insurance will protect you from…the past. History in real estate is more important than you think. The history of a home, the owners, the title of that home, all can come back around. Primarily, title insurance insures against financial loss caused by defects in title to real estate. Think: even years after you’ve purchased a home, the deceased owner’s will may resurface and your rights to the property may be seriously affected! We are talking major jeopardy to your ownership. If the owner of a property dies with no known will or heir, the state may sell those assets- this includes the home. The estate really matters. An estate covers all economic values of an individual: investments, assets, and interests of an individual. An estate is the total property; real and personal, owned by an individual prior to distribution through a trust or will. All of this comes up when a title report is ran – that is why it is SO important to review this and obtain this report from your title company. The bottom line is title protects against claims from defects.
Defects are defined as:
person claiming an ownership interest improperly recorded documents, fraud, forgery, liens, encroachments, easements and other items that are specified in the insurance policy. Another thing to watch out for are encumbrances. This means that a third party has a liability or interest in the property and consequently diminishes the value of the property. In other words, any liens, easements, leases, mortgages, or restrictive covenants. This would impact the transferability.
At Turner Title, you can rest assured that we are protecting from these types of hazards.