What is Title Insurance?
Generally, a person thinks of insurance in terms of the payment of future loss due to the occurrence of some future event. For instance, a party obtains automobile insurance in order to pay for future loss occasioned by a future “fender bender” or for the future theft of the car. Title insurance is a unique form of insurance. It provides coverage for future claims or future losses due to title defects which are created by some past event (i. e., event prior to the acquisition of the property). These risks are far less obvious than those protected against by questions about title insurance.
Will You Get Clear Title?
It is of utmost importance that you receive clear title to the property when you purchase real estate. In order to do so, you must first be informed of any existing rights or claims that may, in the future, threaten your title and possession to the property. Title insurance provides you with this twofold protection.
How Do You Find Out What Claims Exist?
In order to determine the status of title, Achieve Title conducts a diligent search of the public records for those documents associated with the property. Achieve Title then examines those recorded documents in order to determine if there are any rights or claims that may have an impact upon the title to the property. The title search may reveal the existence of recorded defects, liens, or encumbrances upon title such as unpaid taxes, unsatisfied mortgages, judgment on tax liens against the current or past owners, easements, restrictions and courts actions. These recorded defects, liens and encumbrances are reported to you prior to your purchase of the property. Once reported, these matters can be accepted, resolved or extinguished prior to the closing of the transaction. In addition, if there is anything unreported, you are protected against any loss or damage resulting from recorded defects, liens or encumbrances upon the title transaction. This is the first benefit you receive from title insurance.
What About Undiscovered Claims?
The title to the property that you have purchased could be seriously threatened or lost completely by hazards which are considered “hidden risks.” “Hidden Risks” are those matters, rights or claims that are not shown by the public records and therefore are not discoverable by a search and examination of those public records. Matters such as forgery, incompetency or incapacity of the parties, fraudulent impersonation, and unknown errors in the records are examples or “hidden risks” which could provide a basis for a claim after you have purchased the property. In order to protect you against this possible, Achieve Title provides insurance coverage for such claims. This is the second benefit you receive from title insurance.
How Does a Title Insurance Policy Protect Against All These Claims?
If a claim is made against your insured title policy. Achieve Title Insurance service protects you by: (1) Defending your title, if necessary; and (2) Bearing the cost of setting the case. if it proves valid, in order to protect your title and maintain your possession of you property.
Only One Premium
Unlike other forms of insurance, the original premium is your only cost as long as you or your heirs own property. There are no annual payments to keep your Owner’s Title Insurance Policy in force.