Title Insurance Guide

Title Insurance

When you acquire title, title insurance protects you from defects, liens or encumbrances on your title, under the terms of the policy. To understand why title protection is essential, we need to consider real estate for a moment.

Your Ownership of Real Estate.

Real estate has always been considered one’s most valuable possession. It is so basic a form of wealth that many special laws have been enacted to protect ownership of land and the buildings which stand on the land. You should realize whenever you buy property that the owner who is selling it to you has extremely strong rights, as do his family and heirs. Also, there may be others, in addition to the owner, who have “rights” in the property you are going to buy; perhaps governmental bodies, or contractors, for example. Some of the things a title search uncovers are any unpaid taxes or mortgages.judgments against previous owners, easements, and many other court actions or recorded documents which can affect title to real estate.

Protecting You Against Hidden Risks.

Protection against loss from certain claims on real estate which cannot be discovered by examination of the public records, relating to land, is the second part of the twofold benefit which First American Title Insurance provides. For example, the title to the home which you have paid for- and to which you have received a deed – could be threatened or lost by such circumstances as a forgery, or error in recorded documents. These contingencies will be covered in your policy of title insurance, under its terms.

How Does a Title Insurance Policy Protect Against These Dangers?

If a claim is made against your title as covered by your_ policy, First Amerjcan Title protects you by:

1. Defending your title, in court if necessary, at our expense, as to covered matters.
2. Bearing the cost of settling the claim if it proves valid, in order to protect your title.

Summarizing – What Title Insurance Means This to You:

It is insurance that, if any undisclosed claim covered by your policy arises out of the past to threaten your ownership of real estate, it will be disposed of, or you will be reimbursed, exactly as your title insurance policy provides.

And You Pay Only Once.

Unlike other forms of insurance, the original premium is your only cost as long as you own the property. There are no annual payments to keep your Owners Title Insurance Policy in force.