What does title insurance do for you?

Q. What is title insurance?
A. Title insurance is an insurance policy that protects your legal rights to own, possess, use, control and dispose of land.

Q. Why is transferring the title to real estate different from transferring the title to other items, such as a car?
A. Transferring a real estate title can be complicated, because land is permanent and the usage of land and the rights to use it can change over the years.

Q. What is a title search?
A. A title search is a detailed examination of the historical, public records concerning a property. These records include deeds, court records, property and name indexes, and many other public documents.

Q. Why do I need title insurance?
A. There are two types of title insurance policies: a lender’s policy and an owner’s policy. The lender’s policy is required for a mortgage, financially covers the amount of the loan, and provides protection to the lender. An owner’s policy protects the landowner against any title loss, which ensures the value of the property. With title insurance, if a claim is made against the title, the underwriter must pay any and all costs associated with defense against the challenge, and if unsuccessful in that defense, reimburse the landowner for any reduction in the value of the land.

Q. Is title insurance as important as homeowner’s insurance?
A. Homeowner’s insurance typically provides protection against theft or damage. If a fire destroys your home, you can rebuild and buy new possessions. If the title to the land fails, you could lose the right to inhabit your home as well as the land it occupies.

Q. How much does title insurance cost?
A. Title insurance charges vary in different sections of the country. However, you pay for an owner’s policy of title insurance only once; there are no monthly premiums.

Q. How long does title insurance coverage last?
A. The lender’s policy of title insurance lasts until the mortgage is paid in full. An owner’s policy of title insurance lasts for as long as you or your heirs retain an interest in the property.

Q. Where can I get title insurance?
A. You can obtain title insurance from any licensed title insurance company or its agents operating in your state.

There are many title issues that can arise to cause the loss of you home, business or mortgage investment.

Title issues not disclosed by the most careful search of public records- called hidden hazards- are the most dangerous. Because of them, your abstract may be perfect, but your title worthless. Your attorney’s examination may be the finest that skill, experience, and legal knowledge can produce, but your title may still be defective.

An owner’s title policy protects you as well as your heirs from financial loss caused by title issues. And the title insurer, without expense to you, will defend you against a claim made against the title of your property. The one-time premium is small. The protection is great.

Listed here are 30 common title problems that can occur. You may not discover them when you buy real estate, but months or even years later, they can result in the loss of your property or an expensive lawsuit.

1. False impersonation of the true owner of the land
2. Forged deeds, releases, etc.
3. Instruments executed under the fabricated or expired power of attorney
4. Deeds delivered after death of grantor or grantee or without consent of grantor
5. Deeds to or from a defunct corporation
6. Undisclosed or missing heirs
7. Misinterpretation of wills
8. Deeds by persons of unsound mind
9. Deeds by minors
10. Deeds by aliens
11. Deeds by persons supposedly single but secretly married
12. Birth or adoption of children after a date of a will
13. Surviving children omitted from a will
14. Mistakes in recording legal documents
15. Want of jurisdiction of persons in judicial proceedings
16. Discovery of will of apparent intestate
17. Falsification of records
18. Claims of creditors against property sold by heirs or devisees
19. deeds in lieu of foreclosure given under duress
20. easements by prescription not discovered by a survey
21. Deed of community property recited to be separate property
22. Errors in tax records e.g., listing payment against wrong property
23. Deed from a bigamous couple
24. defective acknowledgements
25. Federal condemnation without filing of notice
26. Corporation franchise taxes, a lien on all corporate assets
27. Erroneous reports furnished by tax officials
28. Administration of estates of persons absent but not deceased
29. Undisclosed divorce of spouse who conveys as consort’s heir
30. Marital rights of spouse purportedly, but not legally, divorced

TRN Abstract & Title is a full service title, closing, and abstracting company which provides clients with accurate information and research to complete their real estate transactions throughout Cass, Clay, Wilkin, Richland, & Otter Tail Counties. If you have questions or need additional information, please contact TRN directly at 701.239.0202 or visit their web site at www.thetitleresourcenetwork.com.