Title Insurance Protects Your Home Investment

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The biggest investment you will make in your lifetime will likely be purchasing a home. So before you sign on the dotted line, you must be certain that the "title" of the property is clear of any other claims.

Determining that your rights and interests to the property are clear is the business of a title company.

You pay the title company a single premium which includes the cost of verifying clear title and covers you in case some fault is later discovered in the title.

The title company performs an extensive search on the property's title history. Through its research, the title company can usually identify any title problems that may arise and clear up these problems prior to closing.

Because Real Estate Law is so complicated, you need an expert to make sure that all previous transactions have been correct, so you don't end up with legal problems or a problem selling your property. Your owner's policy will describe the property and outline any recorded limitations on your ownership. It will also cover what the title company is responsible for. Title insurance covers the following:

• Contested title — This usually happens when someone who owned or even lived in the home before you claims to still hold an interest. If this happens, the title insurance company will defend your title and will cost you nothing.
• Defective title — "Defective title" covers any number of problems with the title to your home. It can even include a "contested title". Other examples of title defects include problems with legal access to the property, easements that make the property less usable, unusable, or unsaleable. Many other complex problems define "Defective title" or "Clouded Title." The title insurance company will discover these title problems, or if they miss them, insure your loss up to the amount of the policy.

At Foxfield Financial, we answer questions about this process every day. Call us at 720-598-8300.