Why You Need Title Insurance
Buying a home is probably one of the most substantial investments you will ever make. To help protect this investment, your real estate professional should recommend the purchase of an owner's policy of title insurance. But why?
Title insurance applies the principles of insurance to the risks that are present in all real estate transactions.
These risks are primarily those of hidden hazards and human error. Title insurance is issued after a complete and thorough title search. And, even when performed by experienced title examiners, a title search is simply a search of public records, and substantial defects may not be discovered.
So, what does title insurance protect against?
To name a few:
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Mistakes in recording of legal documents |
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Forged deeds, releases or wills |
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Undisclosed or missing heirs, including spouses |
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Deeds by persons of unsound mind |
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Deeds by minors |
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Deeds executed under invalid or expired power of attorney |
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Liens for unpaid taxes |
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Fraud |
When you obtain a mortgage, the property you purchase is pledged as security for the loan. To protect against risk, the lender requires assurance that the title to the property is clear, and this is done through a loan policy of title insurance. However, without an owner's policy of title insurance, the buyer is unprotected.
An owner's policy of title insurance is a contract that protects you, according to the contract terms, against loss or damage due to title defects. This contract is backed by the known assets and reserves of the title insurance underwriter and serves as a written guarantee that your underwriter will undertake, at its own expense, the defense of your title in all legal actions or proceedings alleging the title to be other than as insured.
For a onetime premium, paid during the closing process, an owner's policy of title insurance protects against future losses arising out of past events. In most cases, an owner's policy can be issued at the same time as the loan policy, usually for a nominal onetime fee. Ask your real estate professional about purchasing an owner's policy of title insurance from Michigan Title Insurance Agency and their underwriters with the financial strength, national presence and quality service you need to make the protection of your investment easy and affordable.
Title
And Closing Services
Michigan Title
Insurance Agency can coordinate and provide a wide variety of services to
facilitate the efficient closing of a residential or commercial transaction,
including issuing title commitments, endorsements and policies, underwriting,
recording, escrow services, and additional services