| Title Insurance | |
|
This information is provided by the courtesy of Gerald Jowers, Attorney at Law, and title agent for First American Title Insurance Company. You may reach Mr. Jowers by phone at (803) 765 -9620, or visit his offices located at 1802 Sumter Street, Columbia, South Carolina 29201. |
| Title Insurance is for Your Protection |
| Owning your property free and clear involves more than having a deed in hand. A deed does not cancel certain prior "rights" and "claims" other people may have to you property -- rights whose existence you never suspected; claims that may go back in time months or decades to earliest owners of your newly acquired property. |
| Protecting Your Rights |
| What Protection do I have against such claims? How can I be sure my property is really mine? The answer to both of those questions is real estate ownership insurance, commonly known as title insurance. |
| Title Insurance |
| Title Insurance is an insured statement of the condition of your "title" or ownership rights to a certain piece of property. A title insurance policy describes your property in detail and states what limitations, if any, there are to you ownership. (For example, you may take ownership subject to existing liens or encumbrances. Or you may not own mineral rights. Or easements may have been granted to utility companies or adjacent property owners.) Most importantly, a title insurance policy guarantees that the property you are purchasing is free of undisclosed liens, confusion in the rights of ownership and other clouds on the title. In short, it guarantees that you own the property for which you bargained. |
| Peace of Mind |
A title insurance policy provides
you with peace of mine. It takes the risk out of acquiring property whose
legal history is unknown to you. While there should be no risk in transferring
property, the do exist. Through the years, you new property may have changed hands
many times through sale, inheritance, foreclosure, or bankruptcy. Each transfer was
an opportunity for and error to arise. If an error occurred, and has never come to
light, it puts your title in jeopardy. You could loose you property and the money
you paid for it. And, even if you successfully defend your rights of ownership, the
cost in time and legal fees could be prohibitive. Among the many risks against which
title insurance protects you are:
Before a policy is issued, the title company or one of it's agents conducts a search of public records, maps and documents. The records trace back to colonial estates, pioneer homesteads or Spanish land grants and forward to the current owner. Only after collecting, examining and interpreting appropriate records is a policy issued insuring the condition of title. Besides describing your property and spelling out any recorded limitations on your ownership, a title insurance policy sets forth in clear terms what the title insurance company will do in the event that a flaw in title is discovered or your rights of ownership is challenged. In simple terms, the company agrees: 1. To defend your title in the courts, as insured, at it's own expense. 2. To correct or clear the title when possible. 3. To promptly pay you for your loss in the event of an unsuccessful defense of your title. |
| Two Policies in One |
| This is in effect, two policies in
one. One provides coverage for legal expenses to defend title. The other
provides reimbursement in the event of a loss. A low, one time premium is all you pay to obtain the protection and peace of mind of a title insurance policy. So long as ownership remains in your name or that of your heirs, there is no additional cost. The policy is issued in an amount equal to the purchase price you pay. Of course, the greater the coverage given, the higher the premium. |
|
Other Books In the Library Main Library Page <> Down Payment Stratagies <> Chart of Interest Rates <> Questions To Ask A Lender <> What Are Lenders Looking For? <> Why Buy A Home <> VA Loans <> FHA Loans <> Settlement Cost Handbook <> 3 Things To Avoid <> How To Get Out Of Debt <> Understanding How To Use Credit <> Credit Repair <> Appraisals <> Title Insurance <> Credit Scores <> Automated Underwriting <> |