Title Insurance for Your Peace of Mind
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In the market for a mortgage? We can help! Call us at 630-717-3600. Want to get started? Apply Online Now.
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Purchasing a home is likely the single biggest investment you will ever make. So before you close, you need to know that no one else has a claim to the property.
A title company ensures that your new home doesn't carry expensive encumbrances and other legal obstacles.
For a modest, one-time title insurance premium, you will receive continuous title insurance protection equal to the purchase price of the property or its current market value.
The title insurance company performs an extensive search on the property's title history. The title company can usually find any title problems that may arise and clear up these problems before you close on the property.
Because Real Estate Law is so complex, you need an expert to make sure that all previous transactions have been correct, so you don't end up with legal problems or a problem with the title to your property. Your title insurance owner's policy will describe the property and outline the limitations on your ownership. It will also cover what the title insurance company is responsible for. Title insurance covers the following:
- Contested title — This usually happens when someone who owned or even lived in the home before you claims to still hold an interest. In this case, the title company will defend your title and will cost you nothing.
- Defective title — "Defective title" covers any number of problems with the title to your home. It can even include a "contested title". Other examples of title defects include problems with legal access to the property, easements that make the property less usable, unusable, or unsaleable. Many other complex problems define "Defective title" or "Clouded Title." The title company will discover these problems, or if they miss them, insure your loss up to the amount of the policy.
At Ashok Lakshmanan, we answer questions about this process every day. Call us: 630-717-3600.