Why should I purchase owner’s title insurance?
Owner’s title insurance protects your property from future legal claims regarding ownership of property. You and your family will be given coverage for as long as you own your house for a one time fee. The owner’s policy also covers potential legal fees and court costs for settling claims covered by your policy.
What does the owner’s title insurance cover?
Under an owner’s title insurance policy, you are safe against undetected errors in the title. Sometimes undetected defects can come up after a title search.
Title issues include unknown:
- Outstanding mortgages and judgments, or a lien against the property because the seller has not paid his taxes
- Pending legal action against the property that could affect you
- An unknown heir of a previous owner who is claiming ownership of the property
Unforeseeable title claims include:
- Forgery: making a false document
– For example, the seller misrepresents the identity of the person who sold the property.
- Fraud: deception to achieve unfair gain
– For example, someone steals your identity and either sell your house without your knowledge or consent or takes out a second mortgage on the property and walks away with the money.
- Clerical error: inconsistent paperwork and historical records
– For example, an unforeseeable discrepancy in the property or fence line can cause confusion in ownership rights.
What does the owner’s title insurance cost?
Owner’s title insurance is relatively low to the value of your home and it’s a one-time payment.
How long am I covered?
You and your family will be given coverage for as long as you own your house for a one time fee.
What happens at closing?
Closing is the final step in accomplishing the home buying transaction. It is a procedure that allows the transfer of ownership to happen.