Many home buyers just assume that when they purchased the property,
possession of the deed to the property is all they need to prove ownership.
This is not true!!! Hidden hazards may be attached to that piece of real estate.
Therefore, a property owner’s greatest protection is their Title Insurance Policy.
WHAT IS TITLE INSURANCE?
It is a contract of indemnity which guarantees that the Title IS as reported. And, if it
IS NOT as reported, and the owner is damaged, the Title Insurance Policy covers the
insured for their loss up to the amount of the policy.
* Title Insurance: Assures the new owners that they are acquiring marketable Title.
* Title Insurance: Is designed to eliminate risk or loss caused by defects in Title from
the past owners.
* Title insurance: Provides coverage only for Title problems already in existence at the
time the policy was issued.
THE TITLE SEARCH
Title companies work to eliminate risks by performing a search of the public records.
The search includes: Public Records; Laws and Court Decisions pertaining to the
property which determined the current recorded ownership; Any Recorded Liens
or Encumbrances; And/or any other Matters of Record which could affect the Title
to the property.
When the Title search is complete, the Title Company issues a preliminary report,
detailing the current status of title.
THE PRELIMINARY REPORT
The Preliminary Report contains vital information:
It can affect the Close of Escrow, and Ownership of the Subject Property
It shows how the Current Owners hold Title, and their last known address.
It lists Matters of Record which specifically affect the Subject Property,
or Owners of the Property;
It provides a Legal Description of the Property, and an Informational Plat Map.
