Since a home represents most people's large singe investment, protecting the title, the basic proof of ownership, is essential. A defect in the title can be any legal right held by someone other than the owner, to claim property or to make demands on the owner of that property. A title defect can result in serious financial hardship, including the loss of the home. Title defects can arise from such causes as fraud, forgery, human error,deeds by persons of unsound mind or minors, liens for unpaid taxes, homestead rights, community property rights, or defective foreclosures, just to mention a few. Buying a home can be the wisest and most rewarding investment you will ever make.
Title insurance plays a major role in making certain home ownership is safe and secure.
Title insurance protects you against a number of title defects that could jeopardize your interest in the property you have just purchased,such as an unsatisfied mortgage lien, unpaid taxes, judgments or other recorded claims against the property. Claims could arise through easements,use restrictions or other existing covenants, or it could be a hidden risk. Improperly executed deeds. Marital status of previous owners. Deeds executed under expired powers of attorney.