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DOES YOUR CUSTOMER REALLY NEED TITLE INSURANCE? |
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Having a serious problem with my title seems rather remote. Is title insurance really necessary?
Title companies find problems in 25% of their title searches. Problems such as liens from unreleased mortgages, unpaid child support, alimony, parking tickets, and taxes or from unpaid subcontractors. Other things that can cloud title that are not so easy to detect include forged signatures in the chain of title, recording errors, title search errors, undisclosed easements and title claims by missing heirs and/or ex-spouses. For this reason, title insurance is highly recommended.
I paid for a lender’s title insurance policy. Does that protect me as the homeowner?
No. A lender’s policy protects the lender’s interest in the property should a problem arise. It does not cover the owner’s equity in the property, and will not pay the homeowner’s legal expenses if there is a problem. Only an owner’s title insurance policy will protect the homeowner.
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