Some of my radio listeners have asked about this concern.
They have heard ads warning that their homes can be stolen right from under their noses. The solution, the ad says, is to buy title lock insurance.”
What exactly is this service? Is it something you need to keep your home safe from property thieves? Are other safeguards already in place to protect the deed to your home?
Q: What is title lock insurance?
A: First, title lock insurance is not title insurance. These are two very different things. Title insurance protects real estate purchasers and lenders from losses arising after a real estate settlement resulting from unknown liens, encumbrances, or other defects on the title that existed before settlement. Title lock insurance – not insurance of any kind – claims to protect you against title fraud, not against a legitimate challenge to the title. Title “lock” is a service that monitors the deed to your home to see if it has been transferred out of your name. The service will notify you if this happens – after it has already occurred. These services do not “lock” your title to prevent fraudulent deed transfers.
Q: Do you need this service to protect your home from property thieves?
A: Title fraud is very rare and hardly ever successful. The transfer is fraudulent and void if someone tries to transfer your deed without your permission or knowledge. You can periodically perform the same check on your title – for free – as these “monitoring” services do for a fee. If in doubt, always check with your title attorney.
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