WHAT IS TITLE INSURANCE AND WHY IS IT IMPORTANT TO ME?

Clarksville Real Estate Expert Ron Dayley explains:

Title Insurance, is an policy that is purchased only one time, when you purchase or sale your home / property. You pay only once for this coverage, unlike other forms of insurance, there are no annual payments to keep your Owners Title Insurance Policy. The only exception, is if you refinance, your lender will require a new Lenders Title Insurance Policy, which you will pay at a reduced cost (substitution rate) the mortgage company needs to makes sure there are no new issues with your title. Title Insurance is regulated by the State of Tennessee Insurance department, and the cost of insurance is determined and controlled by them.

We are all familiar with homeowner’s insurance, car insurance, life insurance, but what is title insurance and why do you need it?

WHAT IS TITLE INSURANCE AND WHY IS IT IMPORTANT TO ME?

Title insurance protects one of your most valuable investments, your real estate purchase, most likely your home. When you purchase property, the seller has many laws that protect them and their heirs, and others who might have a claim to that property in some way. What title insurance does, is uncovers any unpaid taxes, mortgages, judgments, liens against any prior owners. They also search and look for easements and other court actions or recorded documents that can affect title to the real estate you are purchasing.

Title insurance also protects against loss from claims on real estate which cannot be discovered by public records. This is probably the biggest benefit of title insurance. An example of this, is something that has become more and more common, fraud. If someone tried to claim title to your home, using, falsified or forged documents, if there was confusion regarding common names, or an error in the records regarding legal descriptions, etc… these contingencies would be covered in your title insurance policy.