Title Insurance Frequently Asked Questions

What is Title Insurance?

Title Insurance provides you with protection against the loss of your property caused by somebody in the future finding a defect in your title to said property.

How does Title Insurance work?

If someone brings a claim against your title to the property, the Title Insurance Company provides you with legal defense for said claim (including attorney fees), and if you lose, the Title Insurance Company reimburses you the equity in your property up to the face amount of your policy.

What specific issues could give rise to a claim against my title, which are covered by an Owner’s Title Insurance policy?

  1. Forgery
  2. Fraud in connection with the execution of documents
  3. Undue influence on a former owner or executor
  4. False personation by those purporting to be owners of the property
  5. Incorrect representation of marital status of former owners
  6. Undisclosed or missing heirs
  7. Wills not properly probated
  8. Mistaken interpretation of wills and trusts
  9. Mental incompetence of former owners which may rule a sale void
  10. Conveyance by a minor or other person legally incompetent
  11. Birth of heirs subsequent to the date of a will
  12. Inadequate surveys
  13. Incorrect legal descriptions
  14. Not properly delivered deeds
  15. Unsatisfied claims against your property not shown on the public records
  16. Deeds executed under false or expired powers of attorney
  17. Confusion due to similar or identical names
  18. Marital rights of spouses of former owners
  19. Incorrect indexing in the public records
  20. Clerical errors in recording legal documents
  21. Delivery of deeds after the death of a former owner
  22. Real estate tax authority errors or omissions
  23. Mechanic’s liens not yet of record

How much does Title Insurance cost?

Title Insurance rates are calculated based on the face amount of the policy (which is usually the amount of the property’s purchase price).  For example, at current rates (March 2011), a $200,000.00 owner’s policy would cost you $700.00.  This is a one-time premium paid at the closing, which would cover you for as long as you or your heirs have any interest in the property (as well as some coverage for you after the property is sold).

Feel free to contact us if you have other questions regarding title insurance or the real estate purchase process.