What is Title Insurance?
What service does a title company perform? What exactly is title insurance? What am I insuring with an owners policy? If you are considering buying your first home you may be asking questions very similar to these.
When a property is bought, sold, or financed, the documents associated with that transaction are typically filed within the public record. Recording legal documents, such as mortgages and deeds, is completed in this fashion in order to show a legal record of who has ownership of what property. There are also other documents however that will be filed within the public record that may effect the ownership of these properties. An example of some of these documents may include liens, levies, or judgments.
When you buy a title insurance policy for your property, a title company searches the public record to find and remedy, if possible - several types of ownership issues. First, the title company searches the public records to determine who has legal ownership of the property. After the search is performed, the underwriter will determine if the title is insurable. Even the best title professionals may not find all of the issues associated with a property, however. Risks, such as filing errors, undisclosed heirs, and forgeries can sometimes be difficult to identify. It is because of these hidden, sometimes hard to identify risks - that a title insurance policy is issued. When a buyer takes out a mortgage loan to purchase a property, the lender will require a loan policy of title insurance. This particular type of policy protects the lender's interest in the property until the loan is paid off or refinanced.
An owners policy of title insurance insures your ownership rights to the property, as the buyer. Unlike a normal insurance policy, a title insurance policy is a one time payment that is generally paid at closing. Despite only paying for your policy once, you will be covered as long as the property remains in your ownership. Our goal at Integrity Title Services is to serve you, whether you are buying or selling, with integrity to make the closing process enjoyable for everyone.