Midwest Title & Escrow, LLC
What Is Title Insurance And Why Do I Need It?
Title Insurance protects the insured against problems or "defects" in the title to their property which occurred prior to the date of the policy.
The title commitment provides valuable information to a potential buyer by revealing who else has an interest in the property and the nature of that interest. This could include mortgage holders, people or companies with an easement interest across the land, and any limitations to your ownership rights such as subdivision covenants and restrictions.
The commitment also provides a detailed list of requirements indicating what must transpire for clear title to pass to the new owner.
What does title insurance protect against?
There are many hidden risks in that can create a problem with the title to your property:
- Errors in the public record
- Missing or unknown heirs
- Fraudulent Deeds or Mortgage Releases
- Mistakes in deed descriptions
- Deeds by minors
- Undisclosed or unrecorded liens
How can there be title defect if the title has been searched and a loan policy issued?
Even the best title search and examination can't reveal all the possible threats to your title. A typographical error in the public records can completely hide an open mortgage taken out by the current owner. A deed executed using a fraudulent identity might not be discovered for months, sometimes years.
The title agent's job is to conduct a thorough exam of the public records to find any known defects or problems impacting the title. Your title policy will protect you from losses due to those unknown factors that can't be discovered by a title search.