What is Title Insurance?

By Janet Roe & Maria Brandenburg | Great American Title

Title insurance is a contract of indemnity that guarantees a property’s title is as reported and recorded. If the title is found to be faulty, the title policy protects the insured from their loss up to the amount of the policy. It assures that buyers are acquiring a marketable property from its true owner and eliminates risks from past defects. Your title policy will pay for defending against lawsuits attacking your title, clear problems and pay losses.

What are the risks that Title insurance protects me against?

• Mistakes in recording legal documents

• Fraud

• False impersonation of true owners of property

• Forged deeds, release of wills

• Undisclosed/missing heirs

• Deeds by minors

• Deeds by persons of unsound mind

• Deeds by persons supposedly single, but are in fact married

• Liens for unpaid inheritance, income, or gift taxes

What types of title policies are available?

There are two kinds of title insurance: Lender’s and Owner’s.

• Lenders: This type of title insurance protects the interests of the lender. It is usually purchased to protect stockholders and investors who have vested interests in a lending company.

• Owners: This type of title insurance protects the interests of the buyer. It is usually purchased to protect the buyer for as long as they or their heirs have any interest in the property.

Please keep us in mind for all your Escrow and Title Insurance needs.  We look forward to working with you on your next transaction.