Title: REASONS FOR TITLE INSURANCE

By:

CJ Harrington

Keller Williams Realty

Date:

09-28-07

Every home owner should be aware if they are not already, that buying property is a numbers business.  This means that the smart homeowner/investor should not only put in the time to know where their current home expenses occur, but should also be aware of the possible risks and expenses they may take on in the future.  With this in mind, below is a list of possible situations I feel you should be aware of, and know how to protect yourself and your home against.

Number one, a fire destroys only the house and improvements. The ground is left.  In this scenario, a defective title may take away not the only the house but also the land on which it stands. Title insurance protects you against such loss. Other situations to consider with your deed or mortgage consist of:  forgery, signing by a person under age, it was made by an insane person or one otherwise incompetent person, it may have been made under a power of attorney after its termination and would, therefore, be void, it may have been made by a person other than the owner, but with the same name as the owner, the testator of a will might have had a child born after the execution of the will, a fact that would entitle the child to claim his or her share of the property, it may have been procured by fraud or duress, it is subject to a federal estate tax lien, a judgment or levy upon which the title is dependent may be void or voidable on account of some defect in the proceeding ad the list goes on.  Yet, don't fret over this, just prepare and protect yourself by making the necessary steps by making sure you have title insurance.

Furthermore, I would hope you never have a title claim.  Yet, Americans have the future in mind when they buy a house, and they purchase homeowner's insurance to help protect that future. But with home ownership comes the need to protect the property against the past, as well as the future. Title insurance protects a policyholder against challenges to rightful ownership of real property, challenges that arise from circumstances of past ownerships. Each successive owner brings the possibility of title challenges to the property. When you purchase real property, rely on your title company to protect your interests. This is their job, and should make you life much easier.

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