Title Insurance

4 The decision to purchase a home (or other real property) or refinance is probably the largest and most important financial decision you will make. You and your lender will want to make sure that title to the property is indeed yours and that, unknown to you, no one else has liens, claims, or encumbrances on your property. Title insurance guarantees you or your lender against losses from any defects in title that may exist in the public records at the time you purchase that property, and certain other risks described in the title insurance policy. Possible title defects include: • Errors in public records • Unknown Liens • Illegal Records • Missing heirs • Forgeries • Undiscovered encumbrances • Unknown easements • Bounders/ Survey Dispute • Undiscovered wills • False impersonation Before issuing a title insurance policy, title companies check for defects in your title by examining title plants (a database of property information) or public records including deeds, mortgages, wills, divorce decrees, court judgments, tax records, liens, encumbrances, bail bonds and maps. The title search determines who owns the property, what outstanding debts are against it, and the condition of the title. You should receive the results of this search, which describes the title of the property you are purchasing or refinancing and includes a preliminary title report or commitment. Title companies also handle property closings and hold money in an escrow account until the purchase is complete. Introduction