Title Insurance Basics! Great Read!
Title insurance is protection against loss if a defect is found in the
title of your property. It pays losses arising through defects in title
or liens and encumbrances. From the deed alone, you cannot
determine what rights, liens or claims may be outstanding against
your title. Title insurance establishes clear title and that all previous
rights or claims of ownership have been cleared away.
Title insurance covers errors in deeds, mortgages and other public records.
It also covers liens or claims against the property which become the new
owner’s responsibility after the sale, such as unpaid mortgages, taxes,
sewer/water assessments, contractors liens or judgments. Other possible
claims may include a marital interest by the spouse of a former owner or
by a former owner’s child not mentioned in his will. There may also be an
invalid deed – a previous seller who did not own the property, was…
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