Title Insurance - Protecting your Real Estate Investment

Buying a home is one of the largest investments one can make in one`s lifetime. By purchasing title insurance through your real estate lawyer, you will be ensuring that this large investment is protected.

title is the legal term for ownership of property. when buying a home, there can be many unforeseen factors that can affect your ownership of the property and/or future marketability of your title.

For example, at some point after your purchase transaction has closed, you may find out that you have been the victim of fraud, that is, the seller was not the real Seller but forged the true Seller`s identity, and now the real Seller is asserting that he or she is the true owner.

Other factors or risks include:

1. Zoning / by law infractions
2. Encroachments onto Neighboring Property
3. Survey Errors
4. Liens / encumbrances of the property.

For a one time premium, you can protect yourself against the devastating effects of these risk factors, as the title insurance company will assume the risk for all covered problems, protecting your rights and ownership to the property for as long as you own it.

Another benefit of title insurance is that it may reduce your legal expenses by eliminating some disbursement costs your lawyer would have to otherwise incur as certain searches which would otherwise be mandatory, would not be required, if title insurance is purchased. The cost of the title insurance policy (typically in the $200-$350 range) therefore, is often offset by the savings in disbursement costs.

In addition, a title insurance policy may save you the cost of having to obtain a new survey ($700-$800 range). If your purchase is being financed by a mortgage, the lender will often require that you obtain a new or up to date survey as a condition of the loan.

In most cases the Seller does not have an up to date survey and the existing survey may b e very old and may not show any additions made to the land since the original survey was prepared. The lender may not accept this survey and may insist on a new survey being prepared. For many home buyers, this may be a substantial cost that may not have been anticipated.

Title insurance does not replace the role of the lawyer. Lawyers still must search title and certify the status of title before a title insurance policy can be issued. Title insurance simply provides an added level of protection for the buyer, as it provides broader coverage than a lawyer`s opinion on title.

When purchasing a property, you should discuss the option of title insurance with your lawyer who can purchase the insurance policy on your behalf prior to the closing of your purchase transaction.