Title Insurance

Real estate and property law since 2003

Protect Your Investment

Even though a thorough title search is performed, the Title Insurance Policy protects against hidden defects which do not show up on the title search.

There are two types of title insurance.

Lender’s Title Insurance only protects the lender, and is almost always required by the lending company, whether the transaction is the original purchase of the property or a subsequent refinance. The purchase of the policy is part of customary closing costs. Since most people borrow the money required to purchase real estate, this policy is nearly always issued during the closing process.
Owner’s Title Insurance protects the owner. This policy should be issued when the property is purchased. The Owner must decide to buy the Owner’s Title Insurance Policy – it is not an automatic part of the loan closing process.

If someone initiates a claim against your title, an Owner’s Title Policy provides you with a legal defense. If your title should fail, the insurance reimburses you the equity in your home up to the value of the policy. The Owner’s Title Policy protects your investment as long as you own the property.

You wouldn’t consider purchasing a home without also purchasing a Hazard Insurance Policy to protect against fire. If a home is destroyed in a fire, you can always rebuild. If you lose the home because of a defect in the title, you lose everything.

In order to provide the best coverage in any situation, Origin Title and Escrow issues lender and owner policies through several title insurance companies.

Origin Title also offers enhanced policies that protect the owner against post-closing events that could affect ownership

Enhanced Title Insurance

The extra insurance provided by an enhanced policy covers risks such as:

Claims arising out of fraud, easements
If you are forced to remove an existing violation of any covenants, an existing violation of a regulation or law affecting the land
If you are forced to move any structures because they encroach on other’s land,
If your structures are damaged because of the exercise of a right to maintain or use any easement affecting the land
If your neighbor builds any structures after the policy date which encroach on your land.

Perhaps the two most frequent claims are when a neighbor builds a structure encroaching your land or when your land is damaged by someone else using their easement. Enhanced policies cost a little bit more than the standard policies, but the peace of mind it provides is well worth it.

Title Search Basics

What is a Title Search?
Before any real estate loan closing, a title search is performed.

A title search is a careful examination by an objective third party of all public records that involve title to a specific property.

The purpose of the search is to verify that there are no liens or claims against the property, other than those claimed and disclosed during the current transaction.

A title examination confirms that all former owners have formally given up their rights to the property.

Title searches typically include documents filed during the previous 50 years.

The person conducting the search looks at items such as past owners and deeds, wills, trusts, mortgages, judgments, and other liens.

Why is it required?
Real estate rights are protected by many laws. The owner, the owner’s family and heirs have clear rights or claims relating to the property being sold. Other entities could also have an interest in or a lien upon the property:

Governmental Bodies
Internal Revenue Service
Lenders
Contractors
Creditors

The real estate may be sold without the knowledge of the party having a claim to the property. Or, real estate could be purchased without the purchaser having any knowledge of these claims.

Whether the buyer knows about these rights or not, they remain attached to the title to the property until they are extinguished.