I tell my Buyers that Title Insurance is the best insurance policy you can buy. You only pay for it once and it protects you from a wide variety of possible ills.
1. Property Titles: First, Title Insurance protects you from human error. Titles to property were kept in book form for most of the history of the United States. The grantors were in one set of books and the grantees in another set. To trace back a title to its source, a human being had to haul out big dusty books. Although most title information is now on computers there is still a lot of room for error because a title search has so many components.
2. Re-conveyances: These are proof that liens and encumbrances are paid off. These can be placed on a home by a variety of entities. You want to make certain everything is settled and paid off before closing.
3. Easements and Right-of-ways that may exist on any given property. These can be from the local public utility companies but can also be private entities.
4. CC&R: stands for "Covenants, Conditions and Restrictions. These can be put on a property by the developer, the builder or a neighborhood association.
5. Title searches also examine marriage records, death certificates and tax sales.
6. They also look for fraud, forgeries, and missing or incorrect signatures.
7. They look for defective record-keeping.
8. Judgments against the property or owners of a property. This comes into play most often when people have judgments regarding alimony or child support. This affects judgments against Buyers as well as Sellers.
These are reasons to buy Title Insurance. It protects you from, or identifies for you, all sorts of issues as stated above. It's best to buy extended title insurance. It can be extended beyond the 2 year limit and it's your best protection against human error. In Omaha real estate, we at CBSHOME trust Nebraska Land, Title & Abstract for title work. They get you to the closing table on time, accurately and work closely with agents and clients to get the job done.
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