As anyone knows, home buying can be expensive. First and foremost, there is the cost of the house. But then there are all of the closing costs, as well, including: Title Search, Attorney Fees, Recording Fees, Lender’s Title Insurance, Home Inspection, Home Appraisal, Home Warranties, and much more! So it is no wonder that many home buyers are hesitant to shell out any more money for optional coverages, such as Owner’s Title Insurance.
But according to REALTORs everywhere, Owner’s Title Insurance is a must!
Owner’s Title Insurance is one of the least understood, yet incredibly necessary insurance policies around. If a previous owner perpetrated a fraud, committed a forgery or the clerk of the land records failed to record or recorded incorrectly, the purchaser is unprotected without Owner’s Title Insurance.
The most common causes of title encumbrance include:
- False impersonation of the true owner of the property
- Forged deed, releases or wills
- Undisclosed or missing heirs
- Instruments executed under an invalid or expired power of attorney
- Mistakes in recording legal documents
- Liens for unpaid estate, inheritance, income or gift taxes
With the Owner’s Title Insurance, the title insurance company incurs the expense of determining the validity of a claim and defending against the claim. If there is a title defect, the title insurance company pays the claim so that the purchaser retains ownership without loss, or compensates the owner for any and all losses incurred as a result.
We at Colony Title want to be your Title Company and real estate law firm. For additional information, please contact Tee Tillman at 410.884.1160 ext. 3007 or visit ColonyTitle.com today!
About Colony Title Associates:
Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. The founder Tee Tillman has over 23 years experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the area.