When you buy a home, a condominium or any other type of building or even vacant land, you should have a complete investigation made on every aspect of the property, otherwise you may discover that the property you bought and paid for is not actually yours at all. This is where Title Insurance comes in. The most accurate description of title is a bundle of rights in real property. A title search is the process of determining from the public record just what these rights are and who owns them. The search determines that the person who is selling the property has the right to sell it, and that the buyer is getting all the rights to the property (title) that he or she is paying for. A title insurance policy will insure the existence or non-existence of rights to the property based on the title search.
Title insurance is issued after a careful examination of all public records. This search includes a history of ownership on the land, tax and special assessment evaluation, and determination of possible unsatisfied mortgages, liens, and judgments. But even the most thorough search cannot absolutely assure that no title hazards are present, despite the knowledge and experience of the professional title examiners at Title Guaranty & Abstract Company Here are just a few of the most common hidden risks that can cause a loss of title or create an encumbrance on title.
- False impersonation of properties true owner.
- Forged deed, releases or wills.
- Instruments executed under invalid power of attorney.
- Undisclosed or missing heirs.
- Mistakes in recording legal documents.
- Deeds by minors, or persons of unsound mind.
- Homestead Rights of spouses.
- Liens for unpaid estate, inheritance, income or gift taxes.
A title insurance policy will insure the title against these hidden risks, along with others. Title insurance will pay for defending against any lawsuit attacking your title as insured, and will either clear up title problems or pay the insured's losses. For a one-time premium, an owner's title insurance policy remains in effect as long as you, or your heirs, retain an interest in the property.
What this means to you? The peace of mind in knowing that the investment you've made in your home is a safe one. You can trust Title Guaranty & Abstract Company.