FAQ

Most definitely! Title Insurance is a means of protecting yourself from financial loss in the event that problems develop regarding the rights to ownership of your property. There may be hidden title defects that even the most careful title search will not reveal. In addition to protection from financial loss, Title Insurance pays the cost of defending against any covered claim.

• Improper execution of documents

• Mistakes in recording or indexing of legal documents

• Forgeries and fraud

• Undisclosed or missing heirs

• Unpaid taxes and assessments

• Unpaid judgments and liens

• Unreleased mortgages

• Mental incompetence of grantors on the deed

• Impersonation of the true owners of the land by fraudulent persons

• Refusal of potential purchaser to accept title based upon condition of title

When you purchase your home, you take “title” to your property. Any number of problems that remain undisclosed after even the most meticulous search of public records can make a title defective.

These hidden “defects” are dangerous indeed because you may not learn of them for many months or years. Yet they could force you to spend substantial sums on a legal defense and still result in the loss of your property.

No, there are two types of Title Insurance. Your lender likely will require that you purchase a Lender’s Title Insurance Policy. This policy only insures that the lender has a valid, enforceable lien on the property. Most lenders require this type of insurance, and typically require the borrower to pay for it.

An Owner’s Title Insurance Policy, on the other hand, is designed to protect you from title defects that existed prior to the issue date of your policy. Title troubles, such as improper estate proceedings or pending legal action, could put your equity at serious risk. If a valid claim is filed, in addition to financial loss up to the face amount of the policy, your Owner’s Title Insurance Policy covers the full cost of any legal defense of your title.

The one-time premium is directly related to the value of your home. Typically, it is less expensive than your annual auto insurance. It is a one-time only expense, that is state regulated and paid when you purchase your home. Yet it continues to provide complete coverage for as long as you or your heirs own the property.

There are many reasons to invest in a survey of the premise. A survey will show the location of the parcel of real property, along with the property lines, and where visible improvements such as sheds, pools, fences and patios; and if they are all located within those property lines.

Other important reasons to obtain a survey:

• To determine if a problem exists so the seller can be required to correct the issue, and you don’t purchase an undisclosed problem.
• To obtain title insurance coverage that improvements don’t violate property lines. Either improvements on the land you want to purchase sitting over the property line or improvements from the neighboring property(s) encroaching onto your lot.
• To determine see where the boundary lines and easements shown on the subdivision plat are located.
• If you ever want to build/rebuild a deck or addition, your county will likely require a house location survey. If you want to install a fence, many jurisdictions also require that you obtain a permit and include a survey.
• Shared driveways should be shown on a survey. If there’s not a recorded use agreement this is something the seller could address prior to closing.
• Access to roads, ingress and egress, and abandoned roads are laid out so that you can see them. Just because they appear on a survey doesn’t mean you have a right to use them.

Title insurance policies do not provide coverage for encroachments, easements and boundary line disputes which would be disclosed by a current certified survey. This is known as the survey exception. A survey certified to you provides critical information which when used with title insurance, allows us to protect you against claims which may arise after the closing. In other words, a Survey Endorsement provides coverage against possible undiscovered problems involving encroachments, easements and boundary line disputes.