Title Insurance
The purchase of residential real estate is the most expensive long-term financial commitment most individuals or families will ever make. Because of this, all those involved will want to be sure that the rights to the property are clear, that the transfer will be completed expeditiously and correctly, and that their financial interests are safeguarded to the maximum extent possible. Through title insurance and escrow services, Acute Title helps all involved parties achieve these goals.
Title insurance differs significantly from other forms of insurance in many respects. While the function of most other forms of insurance is risk assumption, the primary purpose of title insurance is to eliminate risks and prevent losses that can occur when a title is defective.
To achieve this protection, Acute Title first performs an extensive search of public records to determine whether any person other than the seller has any right, lien, claim or encumbrance that must be taken into account. Once all the rights and claims are clearly determined, a title product may be issued.
Title insurance services are designed to afford homeowners, lenders, and others protection from adverse title claims or risks. The financial assurance offered by Acute Title, both in satisfying any valid claims and in defraying any attacks on the title, is the key aspect of title protection. This process also helps ensure that all parties have a clear understanding of their interests before the transaction is consummated. In this way, potential title claims can be resolved before financial losses are incurred.
What is a Title Insurance Policy?
A Title Insurance Policy is an agreement between the insured party and the insurance company. The insurance company agrees to protect the interests of the insured party in real estate. There are two types of policies – an Owner’s Policy and a Loan Policy. The Owner’s Policy protects the party that is purchasing the real estate and a Loan Policy protects the Lender’s interest.
What Does Title Insurance Cover?
- Forgeries in the chain of title
- Altered instruments
- Recorded but undelivered instruments
- Instruments obtained by fraud or duress
- Instruments executed to defraud creditors
- The incompetency of parties to the instrument
- Errors by searchers or examiners
What Isn’t Covered?
- Defects that occur after the date you purchase the property
- Problems that occur which are directly caused by your actions
Is the Purchase of a Title Insurance Policy Mandatory?
- Owner’s Policy:
No. It is certainly recommended and is what protects the owners of the property. It is especially important on purchase or new construction transactions.
- Lender’s Policy:
Yes. Lenders REQUIRE that their interest in your property is protected by a policy.
Title insurance is a relatively inexpensive item and can be one of the best purchases you’ll make for your new home. You’ll sleep better knowing that you are protected if a long-lost heir of the former owners shows up at your doorstep.