 | Jeff Otto is Branch Manager of Lawyers Title Insurance Corporation which is a member of LandAmerica Financial Group, Inc., a premier national provider of title insurance and settlement services. Lawyers Title has been in the local marketplace since 1955. Jeff has been with Lawyers Title for 34 years, the last 24 right here in Wichita. You may contact Jeff at (316) 682-9600 x 201 or by e-mail at jotto@landam.com |
Real Estate
2005-03-01 10:09:00
Facts & tips about title insurance
ANSWER: Buying a home is one of life's most gratifying experiences. As you approach the big day of closing, however, all the details can be a little overwhelming. A knowledgeable Realtor can make all of those details flow smoothly. Without this Realtor advantage, you might easily overlook the single most important step in the entire process -- the purchase of Title Insurance on that wonderful new home of yours. A title is the evidence, or right, that a person has to the ownership and possession of land. It is possible that someone other than the perceived owner has a legal right to the property. If that right can be established, this person can claim the property outright, or make demands on the owner as to its use. To avoid feeling stupid in the future, don't make a mistake regarding the purchase of Title Insurance. Ever!Title Insurance is a means of protecting yourself from financial loss in the event that problems develop regarding the rights to ownership of your property. There may be hidden title defects that even the most careful title search will not reveal. In addition to protection from financial loss, title insurance pays the cost of defending against any covered claim. Any number of problems that remain undisclosed after even the most meticulous search of public records can make a title defective. These hidden "defects" are dangerous indeed because you may not learn of them for many months or years. Yet they could force you to spend substantial amounts of your own money on a legal defense, and still result in the loss of your property.There are two types of Title Insurance . Your lender likely will require that you purchase a Lender's Policy. This policy only insures that the financial institution has a valid, enforceable lien on the property. Most lenders require this type of insurance, and typically require the borrower to pay for it. An Owner's Policy on the other hand is designed to protect you from title defects that existed prior to the issue date of your policy. Title troubles, such as improper estate proceedings or pending legal action, could put your equity at serious risk. If a valid claim is filed, in addition to financial loss up to the face amount of the policy, your owner's title policy covers the full cost of any legal defense of your title. Is it expensive, you might ask? The one-time premium is directly related to the value of your home . Typically, it is less expensive than your annual auto insurance. It is a one-time only expense, paid when you close the purchase of your home. Yet it continues to provide complete coverage for as long as you or your heirs own the property.
