Reasons to Purchase Title Insurance

1. THE ROLE OF A THOROUGH TITLE SEARCH

Before committing to purchase or refinancing a property, a title examiner will examine title plants or public record databases for the purposes of determining the ownership of the property and to uncover deeds, mortgages, wills, divorce decrees, court judgments, tax records, liens, encumbrances, bail bonds, and maps associated with your potential property. This search is designed to disclose any potential title defects or legal issues ahead of time.

2. PROTECTION FROM THE UNFORESEEN DEFECTS

Notwithstanding, despite an exhaustive title search process, there is still the potential for unforeseen title defects to arise long after you’ve purchased your new property. Title insurance will protect you from undisclosed or secret:

• Liens that are the result of a prior owner’s actions which can be placed against the property by a contractor, tax authority or lender who hasn’t been paid.
• Easements or a third party’s right to use or access your property even though you are the owner. Say a utility or sewer line runs through your backyard—if so, the utility or sanitation company will have an easement allowing them to access your property. The easement could also prohibit you from using your property however you want, such as building a garage or adding a pool.
• Encumbrances or other forms of claims against the property, which can include restrictive covenants imposed by homeowners’ associations or leaseholder rights.
• Outstanding debt from the previous owner, such as mortgages, judgments, unpaid child support or unpaid taxes.
• Conflicting wills or an undisclosed/unknown heir of a previous owner suddenly claiming ownership.