Title Insurance

Owning a home is one of the most important

parts of the American dream, but having the

deed to a piece of land does not necessarily

mean the property is yours free and clear.

Other people may have certain prior rights or claims that your

deed will not erase. Such rights can go back all the way to

the earliest owners of your new property. In order to protect

your investment, you may consider purchasing title insurance.

There are two types of title

insurance policies that may

be purchased at the time a

property changes from one

owner to another: an

owner's policy and a

lender's policy. Both the

owner's policy and the

lender's policy protect the

named insured against an

unknown defect in the title of

property.

A defect may mean you

could incur additional costs

in the future or even lose

legal title to the property if

the defect is not resolved

before you take possession.

If you have a title insurance policy, the insurance company

will defend your title in court and pay any settlement amount

you owe to clear the title, as long as it is a covered item.

What owner's title insurance covers

If an error occurred but is not discovered until you buy the

property, you may face a hidden risk and your ownership of

the property could come into question. Owner's title insurance

protects you from such errors, as well as:

.................

Protects you from financial loss due to covered claims

against your title, up to the face amount of the policy.

Pays your legal costs if the title insurance company is

required to defend your title against covered claims.

Pays successful claims against your title, up to the

face amount of the policy.

Continues protection after you no longer own

the property.

Forged deeds, releases, or wills

Undisclosed or missing heirs

Misinterpretations of wills

Liens for unpaid estate, inheritance,

income or gift tax

False impersonation of the true owner

Confusion caused by similar names

Signatures of minors or persons who

are not mentally competent

Signatures of persons represented as

single but who are actually married

Errors in recording legal documents

Clerical errors in public records

Invalid documents executed under an

expired power of attorney

Fraud

Invalid divorces

Unpaid child support lien

Unpaid taxes (local, state, federal)

Unrecorded easements (rights of way)

Here are a few of the most

common hidden risks that can

cause a loss of title or create an

encumbrance on the property:

Title Insurance

offer "simultaneous issue credit" as long as you buy the

owner's insurance within 30 days of closing (and buying

the loan policy).

Simultaneous issue credit decreases the amount of your premium. If the house you are buying was owned by the seller for only a few years, check with the seller's title company. You may be able to get a "re-issue rate," because the time between title searches was short.

If no claims have been made against the title since the

previous title search was done, the insurer may consider

the property to be a lower insurance risk.

Look for an "owner's title policy" with as few exclusions

from coverage as possible. Exclusions are listed in each

policy, and if a policy has many exclusions-that is,

situations under which the insurer will not pay for your title

problems-you may end up with little coverage.

Frequently Asked Questions

Title insurance agents check for defects in your title by

examining records on file at the Register of Deeds office.

These records may include deeds, mortgages, wills,

divorce decrees, court judgments, tax records, liens, and

encumbrances. If any problems are found, those items will

usually have to be cleared before the mortgage records

on file at the Register of Deeds office. If any problems are

found, those items will usually have to be cleared before

the mortgage company will loan you the money or allow

you to take possession of the property.

At the time of closing, the agent should explain the title

policy commitment, and any exclusions found on pages

numbered Schedule A and B. Once all closing papers are signed and filed, the title commitment provides coverage until the title insurance company issues the actual policy. Title insurance agents also may hold money in escrow and perform closing services for an additional fee.

Usually the purchaser of the property is required to buy

the lender's title insurance policy. This policy only protects

the lender's interest. Either the seller or the purchaser can

buy the owner's policy. The party who will pay for the

owner's policy can be negotiated during the purchasing

process. The owner's policy protects you, the new owner

of the property, from any defects in the title once you take

possession.

Title Insurance Tips

What does FSBO (pronounced fizzbo) stand for?

For Sale By Owner

(Between 85 to 95% of existing homes are sold with the help of a realtor.)

REALTY EXECUTIVES Lafayette

3554 Promenade Parkway, Suite A

Lafayette, IN 47909

Office: 765-807-2607

Cell: 765-418-0919

tinadevore@realtyexecutives.com

www.beyondagents.com/tinadevore

Equal Housing Opportunity If you have a brokerage relationship with another agency, this is not intended as a solicitation. All information

deemed reliable but not guaranteed.