Q: What is Title Insurance?

A:Title Insurance is a policy purchased by a trustee or mortgagor, which indemnifies the holder from financial loss or harm stemming from defects in the title to real property. A policy of title insurance does not convey title; rather, it protects an owner from defects in the title not discovered in a title search, abstract of title, or chain of title.  

Q: Why do you need Title Insurance?

A:Possible title troubles, known as "hidden risks", may not be revealed until months or even several years after you have purchased the property. Even a title examination by a seasoned abstractor or experienced real estate attorney does not affirm that every title problem has been recognized and resolved. These "hidden risks" can end up costing you a fortune in attorney’s fees, expensive lawsuits and the possibility of losing your property. Examples of some "hidden risks" include:
  • False representation of the true owner of the property
  • Clerical errors made by the county clerk’s office
  • Forged deeds, mortgage releases or other false documents
  • Deeds made by Minors
  • Deeds by persons of unsound mind
  • Undisclosed or missing heirs
  • Liens from unpaid estate, inheritance, income and gift taxes
  • Improperly index liens on property
These are just a few of the many "hidden risks" that are associated with purchasing property. That is why it is vital that you purchase your title insurance. Why wait until an unforeseen problem arises?