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Title
Insurance
When you buy a home, you
want to be certain it is safely yours. However, even the
most diligent search of the public records could fail to
disclose a number of title defects. Without the protection
of title insurance, you could be in jeopardy of losing your
investment.
There are two basic types
of title insurance protection - one for the mortgage lender and
one for the home owner.
If a mortgage is to be
placed on your new home, the mortgage lender will probably
require that you purchase title insurance to protect the
institution's position as a holder of a mortgage loan. But
the lien holder's title insurance policy does not protect the
home owner. You need an owner's title insurance policy to
protect your investment.
You pay only once.
There are no renewal premiums, and there is no expiration date
on the policy. Yet the protection lasts as long as you, or
your heirs, retain an interest in the property.
Most attorneys will allow
you to purchase a policy based on the Mortgage Lenders title
search up to 30 days after closing.
SHARON HIGHLY RECOMMENDS THE
PURCHASE OF TITLE INSURANCE.
Some
horror stories from the files:
Abe and Susan Giveme were
a very pleasant, personable couple, greatly liked by their
neighbors. They made a good impression on Ron and Linda
Lifelongdream when they purchased their home. Mr.
and Mrs. Lifelingdream were less impressed, however, when they
heard from the real Mrs. Giveme. It seems that Susan was
not Abe's real wife, but his mistress, which meant that the deed
of ownership she signed was invalid.
Mr. and Mrs.
Toogoodtobetrue were charmed by the elderly lady.
Impeccably mannered, she explained that her country home had
been vacant for some time, so she was letting it go at an
irresistible price. Mr. and Mrs. Toogoodtobetrue leaped at
the offer, only to find out later they were unwitting victims of
a classic forgery caper. More cunning than charming, the
old woman had leaned that the real owners of the country home
were living in Europe. She forged a deed to the property
and had it recorded in her own name. Her low asking price
assured a quick sale. By the time Mr. and Mrs.
Toogoodtobetrue were made aware of the scam, the little old lady
was long gone.
Some
of Sharon's true stories:
Sharon worked with a
Buyer in Pickins County. The home closed in early
January. Pickins County was, at that time, late completing
a reassessment of the county properties. The property
taxes for the previous year had not been assessed, had not been
paid, and the closing attorneys missed this fact. Title
Insurance protects buyers from unusual circumstances such as
this one.
Sharon worked for a
seller. The week of closing it was discovered that the
previous seller's deed had not been released and the mortgage
company for that previous seller had gone out of business.
We were only able to close by making a claim on the title
insurance my seller's had purchased when they first bought the
house, 8 years earlier.
Sharon has a copy of an
actual Title Insurance policy you can read if you want.
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