YOU ASK:

Why do I need title insurance?

WE ANSWER:

You need title insurance to protect you from any loss arising from defects in the title of the home or real estate property you are buying. After all, buying a home or a real estate property entails a substantial investment and you would not want to be faced with an issue that affected the property's past ownership. This means that you need funds to mount your legal defense. If you are not able to successfully defend your claim on the title, you may be faced with the loss of your title.

Even if a thorough title search was conducted on public records about the title, there still are title hazards you may be faced. There may be problems that are not easily seen even after you have thoroughly examined the title. These defects may be due to legal, procedural or technical grounds.

Title insurance protects you against known and unknown defects in the title. These include:

  • Heirs that were missing or undisclosed at the time you purchased the property
  • Wills, deeds or releases that have been forged
  • The seller's misrepresentation or false impersonation of the true owner
  • Expired or invalid power of attorney used to execute the instrument
  • Property that was obtained by misrepresenting a will
  • Mistakes in the recording or filing of related legal documents (such as a deed that has a wrong legal description)
  • Deeds performed by minors or by persons classified as having an unsound mind
  • Misrepresentation of civil status - where a person who is married declares that he or she is single
  • Liens for unpaid taxes, such as inheritance, income, estate and gift taxes

If you have title insurance, you can claim for your expenses to defend a lawsuit or expenses to compensate for the losses due to the loss of a title. The insurance can also help with the expenses in clearing up the title.

What's great about title insurance is that it does not have a termination date, for as long as the person insured, as well as his heirs have an interest in the property, then the insurance remains effective.

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