Anytime a buyer purchases a property, it is always strongly advised that the buyer obtain Title Insurance, and always required by lenders. But what exactly does Title Insurance protect the buyer against and what is it good for? If you have ever wondered exactly what title insurance does for the buyer, here is a list of 20 reasons for a buyer to obtain title insurance when purchasing a property.
1. Tittle Insurance will protect you against a loss on your home and land due to a title defect.
2. A deed or mortgage int he chain of title may be a forgery.
3. Claims constantly arise due to marital status and validity of divorces.
4. A deed or mortgage may have been made by an incompetent or under-aged person.
5. A deed or mortgage under an expired power of attorney may be void.
6. A deed or mortgage may have been made by a person witht he same name as the owner.
7. A child born after the execution of a will may have interest in the property.
8. Title transferred by an heir may be subject to a federal estate tax lien.
9. An heir or other person presumed dead may appear and recover the property or an interest.
10. A judgment regarding the title may be voidable because of some defect in the proceeding.
11. By insuring the title, you can eliminate delays when passing on your title to someone else.
12. Title Insurance reimburses you for the amount of your covered loss.
13. Title Insurance helps speed negotiations when you are ready to sell or obtain a loan.
14. A deed or mortgage may be voidable if signed while the grantor was in bankruptcy.
15. Claims have risen dramatically over the last 30 years.
16. There may be a defect in the recording of a document upon which your title is dependent.
17. Title Insurance covers attorney's fees and court costs.
18. Many lawyers protect their clients as well as themselves by procuring Title Insurance.
19. A deed or mortgage may have been procured by fraud or duress.
20. A title policy is paid in full by the first premium for as long as you own the property.
Thanks to Lilly Rose of Equity Title for providing the above information on the importance of obtaining Title Insurance on your property...
