Title Insurance FAQs
For the majority of us, buying a home is the largest single investment we will ever make. Most homeowners protect their investment by insuring against hazards such as fire, theft, and weather damage. But, there is another hazard that can pose an even greater risk to homeownership:
Defects in the title to your property.Fortunately, there is a way to protect your investment. It comes in the form of title insurance. Find answers to your title insurance questions here.
Millie and Hugh Crenshaw, owners of Southern Title and Abstract, have prepared this list of frequently asked questions. Of course, if your question isn’t answered here, please contact us so that we may assist you.
What is a title?
Why is title insurance necessary?
Why is transferring the title to real estate different from transferring the title to other items, such as a car?
What is a title search?
What kinds of problems can a title search reveal?
Are there any problems that a title search cannot reveal?
What is Real Estate Title Insurance?
How does title insurance protect me?
How long does my coverage last?
What are the costs involved?
What is a title?
A title is the foundation of property ownership. It is the owner’s right to possess and use the property.
Why is title insurance necessary?
No other property has a useful life that compares with the life of the land. Owners of goods may change their location at will, but land is stationary. Because land is permanent, various rights in land may have been acquired by others by the time you come into possession. So in order to transfer a clear title to a piece of land, it is first necessary to determine whether any rights are outstanding. Owner’s title insurance protects you from financial loss caused by title problems. Therefore the Title Insurer, without expense to you, will defend you against any attack on the title to your property as insured.
Why is transferring the title to real estate different from transferring the title to other items, such as a car?
Because land is permanent and can have many owners over the years, various rights in land may have been acquired by others (such as mineral, air, or utility rights) by the time you come into possession of it, even if the land has never before been built upon. In order to transfer a clear title to a piece of land, it is first necessary to determine whether any rights are outstanding.
What is a title search?
A title search is a detailed examination of the historical records pertaining to a piece of property. These records include deeds, court records, property and name indexes, and many other documents. The purpose of a title search is to verify the seller’s right to transfer ownership, and to discover any claims, defects and other rights or burdens on the property
What kinds of problems can a title search reveal?
A title search can show a number of title defects and liens, as well as other encumbrances and restrictions. Among these are unpaid taxes, unsatisfied mortgages, judgments against the seller and restrictions limiting the use of the land.
Are there any problems that a title search cannot reveal?
Yes, there are some “hidden hazards” that even the most diligent title search may never reveal. For instance, the previous owner could have incorrectly stated his marital status, resulting in a possible claim by his legal spouse. Other “hidden hazards’ include fraud and forgery, defective deeds, mental incompetence, confusion due to similar or identical names or clerical errors in the records. These defects can arise after you’ve purchased your home and can jeopardize your right to ownership.
What is Real Estate Title Insurance?
Real Estate Title Insurance is your policy of protection against loss if any problems result in a claim against your right to ownership - even a “hidden hazard”.
How does title insurance protect me?
The title insurer will, at no expense to you, defend against the following possible attacks to your right of ownership:
* Forgery
* Fraud
* Loss because of impersonation
* Indexing or filing errors in the clerk’s office
* Guardianship and probate issues arising from heirs/devisee’s of former owners
* Boundary disputes (Surveyor’s errors)
* Title Examiners’ oversights
How long does my coverage last?
Premiums for most other forms of insurance are recurring and must be paid for periodically. Title insurance has only ONE premium, paid at the time of settlement. That single premium will protect you for as long as you or your heirs retain an interest in the property and, in some cases, even beyond.
What are the costs involved?
The one-time premium is directly related to the value of your home. Typically, it is less expensive than your annual auto insurance. Title insurance is a one-time only expense, paid when your home is purchased, yet it continues for as long as you or your heirs own the property.
Get an estimate for buyer closing costs, seller closing costs, or refinance closing costs, or request a quote.
Southern Title & Abstract, Inc. insures against loss or damage from defects of title to the property or the loss of the property due to existing liens at the time of insuring.
In the event of a title claim, Southern Title & Abstract, Inc. will resolve the discrepancy
