Well, before we discuss the main topic “what is title insurance & should I buy an owners policy?,” you should first understand what a title is. Simply stated, the title to a piece of real estate property is evidence that the owner (homeowner) is in lawful possession of that property.
What Is Title Insurance
Title insurance is a form of insurance that protects real estate owners and lenders against any property loss or damage they might experience because of liens, encumbrances or defects in the title to the piece of real estate property. Each title insurance policy is subject to specific terms, conditions and exclusions.
Title insurance for property owners, called an “Owner’s Policy”, is usually issued in the amount that the piece of real estate property sold for. When buying a home an owner’s policy is purchased for a one-time fee at closing and is valid for as long as the owner or his heirs have an interest in the property. Only an Owner’s Policy (title insurance) fully protects the buyer should a title problem arise that was not found during the initial title search. Possible hidden title problems can include:
1.) Errors or omissions in deeds
2.) Mistakes in examining records
3.) Undisclosed heirs
Should I buy an “owners policy” (Tile Insurance)?
The short answer, “Yes!” Title insurance is extremely important for a few reasons. Number one, title insurance will insure that the title is clear and if it isn’t, the title company is responsible due to overlooking the title problem and will cover any claims. Number two, title insurance will give you peace of mind that the biggest purchase you’ll ever make is insured. Number three, the amount that you pay for title insurance (owner’s policy) is minimal compared to what a “dirty title” could cost you.
The Best Title Company in Dayton Ohio
When buying or selling a home in the Greater Miami Valley area, you will want to contact Republic Title Agency, the most respected title company in Dayton Ohio. When buying a home, you will always want to have a thorough title examination completed. After the title company has completed a title examination on the property you are purchasing, you’ll want to discuss the findings (Are there any unpaid liens on the home or any 2nd mortgages). We always suggest purchasing a title insurance policy to protect yourself against any unforeseen title mishaps.