WHY TITLE INSURANCE?
Real Estate has always been considered our most valuable possession and there are many special laws to safeguard its ownership. These laws protect your interest in the property; but at the same time protect the rights of others who may have had an interest in the property in the past. Therefore, it is vital for you to make sure you are acquiring good title and that there are no outstanding claims against it. Title insurance shows you exactly what matters of record could jeopardize your ownership and enjoyment of that property. Title insurance protects you against your title, as insured, including “hidden” title risks…(defects in title that may not be revealed by the public records). Forged documents and claims from missing heirs are good examples. Title insurance pays any covered loss sustained from such a defect in your title. In addition, it provides for the defense of your title in court, if necessary, without charge to you.
I THOUGHT I WAS ALREADY GETTING TITLE INSURANCE?
Since the lending institution you get your mortgage from has a vested interest in your property, they require Mortgage Title Insurance to protect their interest. There is an equally important type of title insurance for you — an Owner’s Policy. This protects you for full value of your property (not just the amount of the mortgage). For a one time fee it protects you against certain adverse claims which may not affect the lender’s interest in your property, but could definitely affect your enjoyment and the resale value of the property. The exact cost of your Owner’s Policy will vary according to the purchase price and mortgage amount. Please call (952) 473-4331 for a cost quote.
WHAT IS AN ABSTRACT?
An abstract is a history of the title to the property as revealed by the public records. Deeds, mortgages, other instruments and legal proceedings which have all affected property through the years are all included in the abstract. If something is revealed in the abstract which might stand in the way of a clear title, it is up to the owner and the owner’s attorney to clear it away. If they cannot do this, it must be accepted as a limitation on your right of ownership. Also, it is not infrequent for matters which seriously affect the title to be omitted in an abstract, because they are not shown in the public records.
RESIDENTIAL OWNER’S POLICY
Chicago Title’s residential owners policy is an easy-to-understand insurance policy that guarantees a buyer comprehensive protection against the risks. An owners policy covers losses which could result from the following threats to the title: Another party owns an interest in the title. A title-related document is not properly signed, sealed, or delivered. There is proof of forgery, fraud, duress, incompetency, incapacity, or impersonation. Title-related documents have been defectively recorded. It is discovered that no legal right-of-access to and from the land exists. There are covenants limiting the use of the land. There are liens on the title due to: A mortgage or deed of trust; A judgement, tax, or special assessment; A homeowners’ association charge. There are liens on the title for labor and/or material furnished before the policy date that the insured did not agree to pay. Others have rights arising out of leases, contracts, options or easements. The title is unmarketable, which means an interest or claim to the title has been unresolved. The insured is forced to remove the existing structure other than a boundary wall or fence because: It extends beyond adjoining land or onto an easement; It violates an existing zoning law.