Questions About Protecting Your Home Ownership

Buying a home is for most of us the biggest single investment we'll ever make. Fortunately, there is a way to protect your investment from defects in the title to your property which could cause you to lose all or part of your investment in your home. It comes in the form of having a title search performed and purchasing title insurance. We've listed answers to commonly asked questions about title searches and title insurance to help you better understand the value of protecting your home ownership.

What is a title search?

A title search is a detailed examination of the historical records concerning a property. These records include deeds, court records, property and name indexes, and many other documents. The purpose of the search is to verify the seller's right to transfer ownership, and to discover any claims, defects, and other rights or burdens on the property.

Are there problems a title search cannot reveal?

Yes. There are some problems that are not revealed by a search of the record title that even the most diligent title researcher would not find in the public records. For instance, the previous owner could have incorrectly stated his or her marital status, resulting in a possible claim by the legal spouse, fraud or forgery, defective deeds, mental incompetence, confusion due to similar or indentical names, and clerical errors in the records. These defects can arise after you've purchased your home and jeopardize your right to ownership.

What is title insurance?

Title insurance is your policy of protection against loss if any of these problems, even problems that a search could not reveal, result in a claim against your ownership.

Are there different types of title insurance policies?

Yes. A lender's policy protects the lender for the outstanding balance of your mortgage, but affords the owner no protection. Only an owner's policy safeguards your investment or equity in the property.