Owning land is one of the most precious values of freedom enjoyed in this country. One can buy it, sell it, invest in it, trade it, as he sees fit. But any change in ownership, to be legal, requires a formal exchange of title (deed).

This is where a Title Insurance Company Fits...

The title insurer carefully researches every known recorded document regarding current and prior ownership of the property being purchased or transferred to determine the current status of the title.

This includes close scrutiny of all public and court records, property tax records, survey and legal descriptions, liens and claims. The search may cover such relevant documents as deeds, mortgages, probates, judgments, divorce decrees, liens and assessments relative to the property in questions. This process of "risk elimination", is followed to determine the insurance interest and what visible title defects will have cleared before title is transferred.

However, no matter how extensive and exacting the title search may be, the possibility of "hidden risks" remain. Records may not reflect claims of missing heirs, forgeries, improperly probated wills and clerical errors in recorded legal documents, confusion due to similar or identical names, deeds executed under expired or false powers of attorney, "Hidden risks" make the purchase of title insurance a most prudent one-time investment.

Because lenders understand the potential impact of the "hidden risk" factors of any real estate transaction, they require a title insurance policy to protect the amount of money they loan to purchase the property. The title insurance policy assures repayment of the loan up to the face amount of the policy in the event of a successful claim against title to the property.

In a similar sense, a buyer should demand the additional protection given his investment by securing an Owner's Title Policy. This policy differs from that of the lender by covering exclusively the owner's interest including the initial "down payment" investment.

The Owner's Title Policy provides:

Maximum assurance of protection from "hidden risks". Secure ownership, free from financial loss due to troublesome claims that may be asserted against your title. Quicker transfer of the property next time it is sold. Full payment of all legal costs to defend a title and payment of all successful claims against it up to the face amount of the policy.

The cost of an Owner's Title Policy, the detailed title search and closing, is reasonable and based on the sales price of the home. When an Owner's and lender's policies are issued simultaneously, the total combined cost is much less than the cost of policies issued separately. In case of a claim, attorney's fees alone would, most likely, exceed the cost of an owner's title policy.

Counted among your many insurance policies is most likely one for the automobile--to cover accidental damage, repairs and theft; health--for unforeseen hospital, doctor and medical expenses; house and personal property--in case of fire, theft, wind, rain or hail damage; life--in case of death.

For most, except the fine print, you know what the policies cover and how much they cost each year in premium payments to renew.

There is one insurance policy you own that may not be as familiar. That is the title insurance policy you received at the time you closed on your home purchase. Most likely it was paid for by the seller--and you've not been asked to renew it since.

Also, if you borrowed money, another mortgagees title insurance policy has to be supplied to the lending institution before they could close on the loan.

Since a home is usually the largest single dollar investment a person makes during a lifetime--the purchase of both policies is a wise decision and the most important policy of all that you own.

For whether you know it or not, title insurance is the only guaranteed protection you have against real estate title loss.

Title insurance, once purchased, remains in effect for as long as the current owner retains an ownership interest in the property. The premium is paid only once--when title is transferred from the property's prior owner. For the home buyer, title insurance brings security of ownership and enduring peace of mind.