Insurance 4 Insurance

Title insurance policy is your best protection against potential title defects, which can remain hidden despite the most thorough search of public records and the most careful escrow or closing.

Title insurance protects the “record” title, insuring it is good subject only to the exceptions expressly set out in the policy. It also insures against certain matters which do not appear of record, such as forgery, identity of parties, incompetence of former owners, interest of missing heirs, and status of individuals not having the “right” to sell property.

Here are just a few of the most common hidden risks that can cause loss of title or create an encumbrance on title:
• False impersonation of the true owner of the property
• Forged deeds, releases or wills
• Undisclosed or missing heirs
• Instruments executed under invalid or expired power of attorney
• Mistakes in recording legal documents
• Misinterpretations of wills
• Deeds by persons of unsound mind
• Deeds by minors
• Deeds by persons supposedly single, but in fact married
• Liens for unpaid estate, inheritance, income or gift taxes
• Fraud
Title insurance fees are not all alike. The fees may vary from state to state, and may not be set by law in every state. In some states, the fees are set by the AGENT, and are market competitive many title companies combine the title insurance premium together with the closing, search and exam fees. This may be the industry standard in your state. The premium fees are calculated on a per $1000 rate. Basic rate covers a policy issued on a Purchase transaction and usually calculated on the Purchase Price and the Mortgage Amount.

There are different types of policies. Owners’ policies are issued to real estate owners. Purchasers’ policies are issued to purchasers of real estate under contract.

Title insurance policy is your best protection against potential title defects, which can remain hidden despite the most thorough search of public records and the most careful escrow or closing.

Title insurance protects the “record” title, insuring it is good subject only to the exceptions expressly set out in the policy. It also insures against certain matters which do not appear of record, such as forgery, identity of parties, incompetence of former owners, interest of missing heirs, and status of individuals not having the “right” to sell property.

Here are just a few of the most common hidden risks that can cause loss of title or create an encumbrance on title:
• False impersonation of the true owner of the property
• Forged deeds, releases or wills
• Undisclosed or missing heirs
• Instruments executed under invalid or expired power of attorney
• Mistakes in recording legal documents
• Misinterpretations of wills
• Deeds by persons of unsound mind
• Deeds by minors
• Deeds by persons supposedly single, but in fact married
• Liens for unpaid estate, inheritance, income or gift taxes
• Fraud
Title insurance fees are not all alike. The fees may vary from state to state, and may not be set by law in every state. In some states, the fees are set by the AGENT, and are market competitive many title companies combine the title insurance premium together with the closing, search and exam fees. This may be the industry standard in your state. The premium fees are calculated on a per $1000 rate. Basic rate covers a policy issued on a Purchase transaction and usually calculated on the Purchase Price and the Mortgage Amount.

There are different types of policies. Owners’ policies are issued to real estate owners. Purchasers’ policies are issued to purchasers of real estate under contract.