Owner’s Title Insurance: Piece of Mind and Protection

Even when you have an attorney perform your closing, it is very important to purchase owner’s title insurance. Owner’s title insurance protects you in case there are any defects in your title. Remember, you are purchasing a piece of ground that has been owned several times before. Sometimes, a prior owner fails to convey a complete interest in the property. Here are some examples of such incomplete conveyances:

• The Deed was executed by a minor;
• The Deed is executed under false, revoked or expired powers of attorney;
• A third person acquired rights in the property by adverse possession which did not appear of record;
• Legal documents are misrecorded;
• Undisclosed heirs;
• Forged deeds, wills, releases of deeds of trusts and other instruments;
• False impersonations of the true property owner;
• Inadequate legal descriptions;

Owner’s title insurance includes protection against these incomplete conveyances and is available for a one-time premium. In case of such defects, the title insurer will pay for defending against an attack on title as insured, and will either perfect the title or pay valid claims up to the policy limit. Also, remember that your title insurance continues in effect even after you sell the property.

So, always make sure to purchase owner’s title insurance when you buy a home.