Owners title insurance can be selected when buying or refinancing a property. It can be purchased once by an owner and will protect against title defects for the entire time that they own the property. Knowing what title defects are can help home buyers decide whether to purchase a policy. Title problems and the importance of title insurance in Philadelphia can be found below.
What Are Title Defects
Title problems are not common but they could have a significant impact when they do exist. Defects are conditions that question the true owner of a piece of real estate. Even though a title search is performed before most homes are purchased, many problems are not easily found and can therefore stay hidden for many years and across many title transfers. Any identified defects must normally be removed before the completion of a sale, but in situations where they are not known, title insurance protects the buyer of the real estate.
Examples of Title Defects
Title defects can appear in many shapes and sizes. The following are just a few examples (although coverage will vary by insurance company).
- Missing Signatures
- Unreleased Liens
- Unrecorded Releases
- Failure to Comply With Correct Recording Rules
- Undocumented Easements
- Undisclosed Heirs
- Forged Documents
- Mental Incompetence of a Party
- Mistaken Identity
- Incorrect Legal Interpretations
Title Problems And The Importance Of Title Insurance
If you purchased title insurance, the insurance agent will either resolve a problem or reimburse you for losses you incur. It can even help defend a law suit jeopardizing your ownership rights. Policies are bought for a specific dollar value, so coverage limits do apply. Also, certain items can be excluded from your policy. Ask your closing representative for a comprehensive list and for additional information on title problems and the importance of title insurance in Philadelphia. In the End, owners title insurance is the best way to protect your ownership rights to a property. Although the fee can be significant, it is paid only one-time and covers you and your heirs for as long as you own a home. It is well worth the cost given that real estate could be the largest investment that you make in your lifetime.