Title Insurance

What is Title Insurance & Do You Need It?

What is Title Insurance & Do You Need It?

What is Title Insurance & Do You Need It?

Purchasing commercial or residential real estate can be a stressful process and each transaction has the potential to carry some challenges even after the closing process. Title insurance helps mitigate the risk of issues that may arise concerning your property transaction.

What is Title Insurance?

Title insurance is a form of indemnity insurance that protects lenders, sellers, and buyers from financial loss sustained from defects in a title to a property. It is also an aspect of residential and commercial real estate that can easily be missed.

Whether it is for a company or your own personal home, a title insurance policy helps protect against any losses or changes should the title to land have any contingencies. 

Do you need Title Insurance?

Title Insurance is needed because expectations do not always meet reality. Whether it is for a residential or commercial real estate transaction, title insurance helps cover against a number of contingencies, such as fraud, forgery, or construction protections. 

The overall goal is to be able to freely sell or pledge your property as security for a loan — title insurance is designed to cover these rights you bargain for. Title Insurance helps protect everyone involved against various possible defects, whether you are the purchaser, the lender, or the seller.

A real estate purchase may be one of the largest financial investments you will ever make. When you buy an owner’s policy of title insurance, you are making a one time purchase that buys peace of mind on your investment. Title Insurance problems can cause serious issues for both buyers and lenders, but these issues can be prevented and managed with the help of experts at a title insurance agency. 

Common Title Issues Uncovered

Examples of problems that can arise after the purchase of a property include:

Forgery

  • Forged documents that transfer no title to the real estate
  • Forged mortgages or satisfactions
  • Forged releases of mortgages

Fraud

  • Fraudulent individuals impersonating true owners of the land
  • Any action by expired or fabricated powers of attorney
  • Defective acknowledgment due to lack of authority or notary

Mistakes in Documentation

  • Public records or legal documents include errors that fail to preserve original documentation
  • Descriptions of property that are not reflective of the current state
  • Previously undisclosed heirs with claims to the property
  • Invalid, suppressed, undisclosed and incorrect interpretations of wills

Read here for more examples of contingencies where Title Insurance would be needed

Landmark Title Answers Your Questions & Concerns 

If you are looking to purchase a new property, our experts at Landmark Title can conduct the necessary due diligence and address any issues to provide the solutions that will remove potential roadblocks from closing.  Contact us today if you are in need of title services for a residential or commercial real estate purchase or if you would like to learn more about our team at ltaz.com. 

Leave a Reply

Your email address will not be published.