Why Title Insurance?

Title Insurance, and Why it’s So Important

Purchasing a home or land is a different buying experience and you need to protect that investment. Record-keeping has been done for years and years, but updated records have made errors in the past come back to the surface. Previous owner debts, legal judgements, and liens can show up without notice. These issues are huge roadblocks to your property and land ownership rights. Owner’s title insurance protects you against these issues by guaranteeing that you have free rights of ownership. This affects not only current but previous owners and issues. At Faxon Settlement Services, LLC, our goal is to ensure that any problems are handled prior to your closing and we will insure that proper recording is done for you.

There are two types of title insurance:

• Owner’s Title Insurance
• Lender’s Title Insurance

A few examples that can affect Title:

• Forged deeds
• Deed executed by a minor
• Deed executed with a Power of Attorney that has been revoked or not recorded
• Deed executed by an insane/incompetent person
• A missed heir that has a right to the property
• Inheritance Tax Liens
• Improper Acknowledgments
• Misfiling of Documents
• Unsatisfied Liens

These are just a few of the most common items that can affect title.

When you purchase a home, it is a necessity to purchase an Owner’s Title Insurance Policy. You will be covered for the above listed examples and many others. Unlike other forms of insurance, you only need to purchase an Owner’s Policy once and it will cover you for the entire time you own that property.

Most lenders require a Lender’s Title Insurance Policy, also known as a Loan Policy. They want to protect against loss and ensure title is clear before they will lend money.

If a lender requires title insurance, don’t you think it would be prudent for you as well.