What is Title Insurance?
Title insurance protects you if there is a problem or defect with the title to your property during your ownership. You purchase an owner’s title insurance policy by paying a one-time premium when you acquire ownership of the property at your settlement. During your ownership, the title insurance policy provides you with a legal defense against certain claims. It may also provide compensation in the event that the defect causes a loss of title.
Common defects include:
- Prior owner liens
- Forged deeds, releases of mortgages, and wills
- Undisclosed or missing heirs
- Deeds by persons of unsound mind or deeds by minors
- Deeds executed under invalid or expired powers of attorney
- Liens for unpaid taxes, municipal assessments, HOA dues, or construction costs
- Fraudulent transfers of title