A Word About Real Estate
Real estate is often a family’s most valuable asset, a form of wealth protected by numerous laws. These laws safeguard ownership of real estate and the improvements on the land. As a buyer, it’s essential to be aware that various parties may have rights or claims to the property you’re purchasing. These parties could include governmental bodies, contractors, lenders, judgment creditors, the Internal Revenue Service, or individuals and corporations with liens on the property. Some of these rights or claims may not be evident during the buying process, and others may not be known to you at all. This is where title insurance plays a vital role in protecting your interests.
The Past Can Determine Your Future
Title insurance is a unique form of insurance that provides coverage for future claims or losses resulting from title defects created by past events. Unlike other types of insurance that protect against future events, title insurance safeguards you from potential hidden risks related to the property’s ownership history. These risks may not be immediately obvious but can have devastating consequences for your investment.
How Does Electric Title Find Out About Title Risks?
To determine the status of the title, Electric Title conducts a diligent search of the public records associated with the property. Our title officers examine these recorded documents to identify any rights or claims that may impact the title. These recorded matters can include unpaid taxes, unsatisfied mortgages, judgments, tax liens, easements, restrictions, and court actions. Any issues discovered during the search are addressed and resolved before the closing of the transaction. Furthermore, our title insurance policies protect you against any loss or damage resulting from recorded defects, liens, or encumbrances within the scope of coverage.
What About Hidden Title Risks?
Hidden title risks are those matters, rights, or claims that are not evident in the public records and thus not discoverable through a regular title search. Examples of hidden risks include forgery, incompetency or incapacity of parties, fraudulent impersonation, and unknown errors in the records. These hidden risks can emerge even after you’ve purchased the property. However, our title insurance policies provide protection against many of these risks, offering peace of mind as you embark on your real estate journey..
How Does a Title Insurance Policy Protect You?
In the event of a covered matter affecting your title, your title insurance policy may protect you in various ways:
- Defending Your Title: Title insurance covers the cost of defending your title against any challenges.
- Settlement Coverage: Your title insurance policy may bear the cost of settling covered matters.
- Loss Reimbursement: If a covered loss occurs, you may receive compensation from the title insurance policy.
Only One Premium
Unlike other forms of insurance, the original premium for your title insurance policy is your only cost as long as you own the property. There are no annual payments required to keep your Owner’s Title Insurance Policy in force, providing a lifetime of protection.
Protect your investment and secure your future with Electric Title’s comprehensive title insurance coverage.
