Hamilton Abstract Company

The loan policy is issued to the mortgage lender to protect their interest in the property until the borrower pays off the mortgage. The owner’s policy, on the other hand, protects the buyer from the risks listed in the policy.

What are title policy endorsements? These are additions to or limitation of title insurance coverage that are attached to a title insurance policy. Endorsements provide coverage that tailors the policy to fit the needs of the insured owner or lender.

Past ownership defects are a type of title defect where someone from the past appears and claims a right to property ownership. This defect could potentially prevent a buyer from being the rightful legal owner.

The primary focus of Title insurance is proactive, not reactive, meaning it aims to prevent title issues from ever arising in the first place giving you peace of mind.

What problems can arise with a title? There are virtually no perfect titles. Utility easements, claims of adverse possession, government restrictions, and tax liens are examples of limitations, or defects that can impact a title.

What happens if you do not get an owner’s title insurance policy? If an issue with the property arises after the date you purchase the property, you would have to bear all the costs of any loss directly.

An easement is an agreement which gives someone the right to access a certain part of the property, for instance to a utility company, to maintain a sewer line. The title insurance also protects you from previously undiscovered utility easements.

Do you know that a title insurance policy also protects you from conveyances by an heir, devisee or survivor of a joint estate who tries to attain title by fraudulent means?

Do you know that title insurance's primary focus is proactive, not reactive? This means it aims to prevent issues from ever arising in the first place.

Do you know that the owner’s title insurance policy also protects you against the unknown heir of a previous owner who is claiming ownership of the property?

If, after closing, you find a lien or defect on your property that pre-dated your ownership of the property, and if it doesn’t fall under exceptions as stated on the policy, then you can file a title claim.

What is the cost of title insurance? The cost of title insurance is directly related to the value of the property. The greater the value, the more insurance coverage is needed.

Buying a property is certainly one of the biggest investments in life. To protect your financial investment, make sure to buy title insurance, which protects against hidden title hazards.

Title insurance covers your valuable possession in the event of an unexpected circumstance, thus giving you peace of mind that you will not suffer a huge loss if any claim arises related to the ownership of the property.

A title search can reveal a number of title defects and liens, as well as other hindrances and restrictions. Some of them are unsatisfied mortgages, unpaid taxes, judgments against the seller and prohibitions limiting the use of the land.

What protection does title insurance provide against property defects and risks? Title insurance will pay for all costs, fees and expenses involved in litigation for defending against property claims.

If the previous owner has incorrectly stated his marital status in title records, it can result in a possible claim by his spouse. A title insurance policy can also protect you from issues involving improper marital status.

What are the different kinds of title insurance policies? There are basically two kinds of title insurance policies: lender or mortgage protection and owner’s coverage.