We recently sat down with one of our community members, Jean Burr from Legend Title to discuss title insurance. Many people do not realize what title insurance is and what it protects so we are hoping to educate our community on its importance. This week, we will discuss the potential issues that can arise during a title search, and why it is important to have title insurance to protect you should something come up in the search.
When a title order is issued, the title company does a search on the entire history of your home. There are a few issues that can be found during the search:
- Errors or omissions in deeds
- Mistakes in examining records
- Undisclosed heirs
- Illegal Deeds
- Unknown Easements
- Boundary/Survey disputes
- False impersonation of previous owner
- Undiscovered will
If any of these issues are uncovered during a title search, the title company will work to remedy them. Some of these issues are hard to uncover upfront and therefore the title insurance will cover you if any of these issues are uncovered at a later time, for as long as you own the home. To give you an example of how title insurance protects you, we’ve outlined some scenarios and how title insurance worked to resolve the problem.
It’s actually fairly common in title searches to find liens on homes that homeowners were completely unaware of. This often happens when you have work performed on your home, and the construction company will put a lien on your home until the job is finished and they receive payment. A company can do this without your permission or knowledge, as they usually release the lien as soon as they are finished. However, there are rare circumstances where the company forgets to release the lien. This can be quickly remedied if you have proof that you paid for the service in full, and the title insurance company can work to resolve this and get the lien taken off.
Another common issue we run into is the crossing of property lines. For example, a homeowner builds a large driveway, or puts in a new garage and doesn’t realize that their new construction crossed over onto their neighbor’s property. Title insurance protects you should someone encroach on your property. The title insurance company will go in and negotiate to see who owns what, help recover any losses, etc.
The title company’s job is to ensure that when you get to the closing table, there are no issues. They do a lot of work behind the scenes to ensure you are able to own this property outright. Whatever problems may arise, they work to resolve them. Furthermore, if any issues arise after purchasing the home, title insurance can help insure you. At Legend Title, they have a high level of care for their customers and will work diligently to ensure the process is as smooth as possible. If you have any questions regarding title insurance, reach out to Jean Burr and she would be happy to discuss with you!
NMLS #: 984868