For most people, buying a home will be the biggest investment that they ever make in their lifetime. Yet, while purchasing their home may seem to be a somewhat straight forward process, the actual right to enjoy their property may not always be so clear.
For example, there are a number of ways in which the title to – and in turn, the actual ownership of – the property could actually be jeopardized. Because of that, having title insurance can help to reduce the likelihood that any issues with the title will arise. It can also help to protect against a loss when the buyer’s ownership rights have been challenged.
The main function of a title insurance policy is to help in eliminating risk and for preventing loss that is caused by defects in the title that may arise out of events that have occurred on the property in the past.
When a property changes hands, a title professional will examine various public records in order to find any potential title risks. This can be tedious work, as there could be missing information, and or data that has been filed incorrectly. Information that is searched for includes liens, judgments, taxes, and utility assessments. Additional items could also include probate issues, as well as pending bankruptcy, unreleased mortgages, and / or even outstanding child support of a prior owner.
If any issues are identified, the title professional will take certain measures in order to remedy them. Or, they may otherwise insure against or around the risk(s) that have been identified. In addition to the identified issues, the title insurance will typically also insure against other certain title risks that are non-discoverable from public records. These may include fraud, forgery, and / or lack of capacity in previous transactions.
There are times, however, when there arises an issue with the title insurance itself. If this occurs, then having an lawyer who is knowledgable in this area is a necessity. If you have a situation where a title insurance policy has not performed as anticipated, contact us. We are experienced lawyer in the area of real estate and title matters and we can get you the answers, and the compensation, that you deserve.