do you need title insurance?
When you buy a condominium,
home, or even vacant land, you must have a
complete title search made on every aspect
of the property. If this is not done, you
may discover that the property you bought
and paid for is not actually yours at all!
Even after the search is conducted you will
need protection in the event that some point
has been missed in the public records. You
will also need protection in the event that
someone makes a claim on the title to your
property. That protection is a title insurance
are the risks that call for such protection?
Real estate has such great
value and is such a basic form of wealth that
many laws have been enacted for its protection.
These laws are so strict and far reaching
that real estate is more strongly safeguarded
than any other form of property.
As a result, the owner of land has exceedingly
strong rights; as do the family and heirs
of the owner.
However, others may also have 'right' in the
property. For example, there are mortgages
and leaseholder rights.
There may also be liens due to unpaid taxes;
lien claims to those whom the owner owes money,
such as mining, oil or air right, and many
others. Anyone who has such a claim is in
a limited way a part-owner of the property.
He or she cannot ordinarily be deprived of
their interest except by having the claim
is still good until satisfied. As a new owner
you may know nothing about these risks but
you are still vulnerable to such claims on
your deed take care of giving you clear title?
No. A deed is merely an
instrument whereby a seller transfers his
or her right of ownership to you. It is not
proof that the person described as the seller
is actually the owner. It does not do away
with claims or rights they may have in the
property. From the deed alone you cannot determine
what rights, liens or claims may be outstanding
against your title.
an examination of the abstract reveal all defects in
It may not, simply because
the public records from which an abstract
is made may not show everything that affects
the title. For example, statements in the
record may be incorrect or may fail to give
important facts. There also may be fraudulent
or improperly executed documents on the record.
In addition, there may even be ordinary clerical
mistakes which could seriously endanger the
title. Despite this, a title would appear
to be clear if only the abstract were examined.
What will a title search determine?
If the search made in
preparing the abstract has been thorough;
If the facts revealed
in the abstract have been correctly interpreted;
If no clerical errors
have been made in public records;
If claims or right of
others have been disposed of.