Owners title insurance can be selected when purchasing or refinancing a property. It can be purchased once by an owner and will guard against title issues for the duration of ownership. Understanding what title defects are can help homeowners decide whether to purchase title insurance. Title problems and the importance of title insurance in MA can be found below.
What is a Title Defect
Title issues are not common but they could have a significant impact when they do exist. Defects are situations that question the legal owner of a property. Even though a title exam is performed in most purchase transactions, certain issues are not obvious and can therefore be unknown for many years and across multiple title transfers. Any uncovered defects must normally be removed before the completion of a sale, but in cases where they are not detected, title insurance can protect the buyer of the property.
Examples of Title Defects
Title defects come in a wide range of scenarios. The following are just a few examples (although this can differ by insurance company).
- Missing Signatures
- Unknown Liens
- Unrecorded Releases
- Failure to Comply With Correct Recording Instructions
- Unrecorded Encumbrances
- Undisclosed Heirs
- Forged Documents
- Mental Incompetence of a Party
- Name Confusion
- Defective Deeds
Title Problems And The Importance Of Title Insurance
If you purchased an owners title insurance policy, the insurance agent may either correct a problem or reimburse you for losses resulting from it. It may even cover defending against a law suit threatening your ownership rights. Policies are bought based on a particular dollar value, so coverage limits do apply. Additionally, specific items can be exclusions on your policy. Ask your closing attorney for a comprehensive list and for more details on title problems and the importance of title insurance in MA. Overall, owners title insurance is the best protection of your ownership rights to a property. Even though the cost can be high, it is due only one-time and covers you and your heirs for as long as you maintain ownership. It is well worth the cost given that a home may be the biggest investment that you make. For more information contact Christopher Graves at email@example.com or 978-376-5389.