When you purchase real estate, it is important to know that you will be able to recoup your investment in that property at some future date – when you choose to sell. By purchasing an Owner’s Title Insurance Policy, you can rest easier knowing that the Title Insurer will defend against claims that you do not have good title to the property.
Resolving Issues Prior to Closing
Title insurance is issued only after a thorough search and examination of the real estate records relating to the property. American Land Title Association (ALTA) estimates that in 25 per cent of the examinations, some type of title problem is discovered and then resolved prior to closing.
Occasionally, however, despite the care taken in searching and examining, hidden problems can arise after closing. These problems include fraud, forgery, ineffective conveyance documents, and liens such as mechanics liens or liens for unpaid estate, inheritance, income or gift taxes.
Defending Against Title Claims
Title insurance will pay for defending against any lawsuit arguing that the title to the property is not as shown on the policy, and will either fix the title problem, or pay for any loss you, as the insured, suffer.
An owner’s policy of title insurance will continue in effect for as long as you retain an interest in the property or have any obligation under a warranty given in any document conveying title to the property to another party.