What is Title?
In Real Estate, title means a Right to Ownership, or a document stating a Right to Ownership.
Title Hazards
Various kinds of claims can "cloud" a title . Some examples are:
- Relatives or heirs with superceding claims
- Fraud or misrepresentation
- Liens
- Easements
- IRS claims
Keeping it Safe
The best way for you to protect your interest in a Real Estate transaction is obtain the services of a Title Insurance Company.
What will the Title Insurance Company do for me?
Trained personnel will perform a title search to verify ownership and to identify any possible "clouds" on title . The result will show ifthe seller has the right to sell , indicated by ownership , and indicate any problems; i.e. liens, etc., that need to be resolved or acknowledged by the buyer before transfer of property .
Title Insurance
Next, the title insurance company will insure the new owner against the possibility of error or forgery in the transfer of title . This is the transfer oftitle. This insurance is in effect the duration of ownership .
Title insurance is paid one time. Two separate policies are issued:
Owners Policy - Protects the new owner in any subsequent claims to the property .
Lenders Policy - Protects the lender against loss of unpaid loan balance in the event of a claim.
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