Title Insurance
Title Insurance is an important part of closing
Why Is It Important?
To protect possibly the most important investment you will ever make – the investment in your home – you need an Owner’s Policy Title Insurance. Hidden defects in the title to your property my represent a serious risk to you. These risks can and will result in losses to the unprotected owner. Below are just a few of the most common hidden risks:
Undisclosed Heirs
Heirs may be overlooked, or an heir thought to be deceased, may show up later to make a claim for his or her share of the property.
Fraud
A remote owner in the chain of the title may have been persuaded to part with his or her title by means of false representation
Forgery
Mortgages, deeds, and other pertinent documents may have been forged in the past.
Errors
Clerical mistakes could result in the misspelling of a name, a wrong address, conflicting figure or a misplaced document
Mental Incompetence
The person executing a deed or release may later prove to have been mentally incompetent, subjecting the document to cancellation.
Defective Deeds
A deed may have been delivered after the owner’s death or without his or her consent, making the transfer void and clouding the title.
Name Confusion
In major metro areas, there may be a lot of people living in the same are with the same or similar names and initials. Confusion can occur when divorces, liens, or judgement involve people with identical names, resulting in title defects.
Marital Rights
Spouses or former spouses of past owners may make belated claims to their share of the property.
Execution By A Minor
A person signing a document affecting title to the property may be under the required age to legally transact business and the documents may be voidable.
Incorrect Legal Interpretations
Claims to title can be made by a person who contests the interpretation of a will.
How Do You Find Out What Claims Exist?
In order to determine the status of the title, WC Title, LLC will do a search of all public records for the documents associated with the property. We will then look over all the documents to determine if there are any other rights or claims to the property. The title search may find defects, liens, unpaid taxes, possible mortgages, or even judgement and tax liens on the property. Once these are found, any issues can either be accepted, resolved, or extinguished before closing on the property. Your property may be threatened or lost completely by issues that are considered “hidden risks”. These are matters that are not shown in public records. Forgery, incompetency, and other errors in these records are considered examples of hidden risks. However, Title Insurance protects you against these risks, and WC Title offers Title Insurance for this very reason.
An Owner’s Policy requires that the Title Insurance Company defend against any lawsuit attacking your title as the insured. The title company will either clear up the title problem or pay the insured’s losses. For a one-time premium, owner’s title insurance policies remain in effect as long as you our your heirs retain an interest in the property. It is well worth your time to investigate the benefits obtained through the purchase of an owner’s policy of title insurance before you complete your purchase.