Owner Title Insurance is a vital protection for anyone buying property, whether that property is residential or commercial. Owner’s Title Insurance or, as it is more commonly known, an Owner’s Title Insurance Policy, will safeguard you from hefty legal fees and possible losses.
It will also pay any valid claims against your property’s title after you have purchased it.
Once you have decided on the property you wish to purchase, you should contact a reputable title company. An experienced title professional will then do a thorough search of all public records associated with the property to make certain there are no flaws (called “clouds” or “defects”) in the way of getting a clear title.
Such defects are problems from the property’s past history that could become obstacles to a clear title in the present day. Some possible problems could be outstanding tax bills, an unpaid mortgage, an unsatisfied contractor’s lien, even an incorrectly spelled name anywhere in the property’s chain of history.
Once such a problem crops up, it must be dealt with and cleared up, even if it had never been disclosed until after you bought the property. Without such title insurance, you are on your own to clear up the trouble, pay the money, go to court to fight and may find yourself out hefty legal fees and possible large losses after a protracted battle.
The protection afforded by Owner Title Insurance
The Owner Title Insurance Policy protects you from all that. It covers you the buyer, financially and legally, as well as providing you a valuable partner (in the title company) in resolving any troubling issues that come up after purchase.
You will no longer be liable for any of these past issues and for a one-time fee, are covered as well for any problems that may be found out about the property’s history for as long as you own the property—whether that is months or years. Your Owner Title Insurance Policy means you have recourse to defend any attacks on your title anytime after you buy the property, now or far into the
future, and your title company will be on hand to help pay any valid claims should they arise.
The Owner Title Insurance Policy is a comprehensive way for you to buy peace of mind along with your new property. Both are valuable investments.
The website of the American Land Title Association has more information on Owner Title Insurance.