Owning a home which meets the individual needs of the family is a wonderful experience.
But before buyers actually get their dream home, they will run headlong into dozens of
home ownership details.
The purchase of a home may prove to be the largest single financial investment many
people make in their lifetime; therefore, the importance of fully protecting such an
investment cannot be over stressed.
A Basic Home Ownership Protection; which absolutely essential to the security of the
home, is a safe, sound, and reliable, Title Insurance Policy.
But What Is Title Insurance?
It is the application of the principals of insurance, to the risks which are present in all
real estate transactions.
These risks are divided into two main categories: Hidden Hazards, which cannot be
detected in the examination of the Title; and Human Errors, which are always possible.
Examples of Hidden Hazards are: FORGERY, FRAUD, IMPERSONATION,INCOMPETENCE
OF GRANTOR OR MORTGATOR, UNKNOWN HEIRS, etc.
Title insurance differs from other types of insurance, by protecting against future losses
rising out of events that have happened in the past. There are no annual premiums. One
premium, based on the amount of the sale or mortgage, is paid when the policy is issued,
and is good for the life of the policy.
A Mortgage Policy, which insures the Lender, stays in effect until the loan is paid off. But
an Owner’s Policy (The Title Insurance Policy), insuring the Buyer, is good as long as the
Owner or Owner’s Heirs own the property.
What Happens Before a Title Insurance Policy Can be Issued?
Initially, the Title Company searches and examines the public land records to investigate
information surrounding title to the property.
The facts revealed by this search will determine:
* That the Seller is, in fact, the Legal Owner of the property.
* That the 'Estate' or degree of ownership being sold, is currently and accurately vested
in the Seller.
* The presence of any Unsatisfied Mortgages; Judgements; or Similar Liens which must
be satisfied before 'Clear Title' can be conveyed.
* The presence of any Existing Restrictions; Easements; Rights of Way; or Other Rights
granted to Others, who are NOT Owners, which may limit the Right of Ownership.
* The status of the existing Property Taxes, and any other Public or Private Assessments.
Each of these matters will be reflected in a Preliminary Report. The preliminary report
is issued to the Mortgage Lender and Buyer before the Close of Escrow.
As you can see, the Title Company is involved in the sales transaction, almost from the time
the purchase agreement is signed, through and beyond the close of Escrow. Working mostly
behind the scenes, but always in close coordination with Realtors, Escrow Officers, Lenders,
and any Legal Counsel, the Title Company strives to carry out this complex procedure in an
efficient and friendly manner.
Title Insurance Policy protection gives a Homeowner peace of mind since it protects the
security of the Title to the property, and the safety of the Owner's investment.
