Page 4 - King Title & Escrow Guide
P. 4

WHAT IS TITLE

                INSURANCE?



                Title Insurance provides the basic and
                essential protection for home ownership. Since      The role of the title company is to search for
                a home purchase is usually the largest single       and examine public records. The facts
                financial investment most people make in            uncovered during the initial search will
                their lifetime, the importance of fully             determine:
                protecting this investment cannot be
                                                                      W h e t h e r   t h e   p e r s o n   s e l l i n g   t h e   p r o p e r t y   i s   o r   i s
                overemphasized. As with many other
                                                                      n o t ,   i n   f a c t ,   t h e   l e g a l   o w n e r   o f   t h e   p r o p e r t y .
                insurance products with which you are
                                                                      T h a t   t h e   “ e s t a t e ”   o r   d e g r e e   o f   o w n e r s h i p   b e i n g
                probably already familiar, Title Insurance
                                                                      s o l d   i s   c u r r e n t l y   a n d   a c c u r a t e l y   v e s t e d   w i t h   t h e
                exists to minimize risk to your investment.
                                                                      s e l l e r .
                                                                      T h e   p r e s e n c e   o f   a n y   u n s a t i s f i e d   l i e n s   w h i c h   m u s t
                                                                      b e   s a t i s f i e d   b e f o r e   “ c l e a r   t i t l e ”   c a n   b e   c o n v e y e d .
                                                                      E x i s t i n g   r e s t r i c t i o n s ,   e a s e m e n t s ,   r i g h t s   o f   w a y   o r
                Title insurance differs from conventional             o t h e r   r i g h t s   g r a n t e d   t o   o t h e r s   w h o   a r e   n o t   o w n e r s
                insurance in the following ways:                      w h i c h   m a y   l i m i t   t h e   r i g h t   o f   o w n e r s h i p .
                                                                      T h e   s t a t u s   o f   p r o p e r t y   t a x e s   a n d   o t h e r   p u b l i c   o r
                  I t   p r o t e c t s   t h e   i n s u r e d   f r o m   f u t u r e   l o s s e s   a r i s i n g
                                                                      p r i v a t e   a s s e s s m e n t s .
                  f r o m   e v e n t s   o f   t h e   p a s t .
                  T h e   p r e m i u m   i s   a   o n e   t i m e   f e e   p a i d   a t   i s s u a n c e .
                  T h e   O w n e r ' s   p o l i c y   r e m a i n s   i n   e f f e c t   f o r   a s   l o n g   a s
                                                                              Chicago Title provides
                  t h e   o w n e r   a n d   t h e i r   h e i r s   r e t a i n   i n t e r e s t   i n   t h e
                                                                            homeowners peace of mind
                  p r o p e r t y .   T h e   L e n d e r ' s   p o l i c y   e x p i r e s   w h e n   t h e
                  m o r t g a g e   h a s   b e e n   f u l l y   s a t i s f i e d .
                                                                            by protecting their interest
                There are two main categories of risk Title                   in the property and the
                insurance covers:
                                                                            safety of their investment.
                  H i d d e n   h a z a r d s   ( f o r g e r y ,   f r a u d ,   i m p e r s o n a t o r ,
                  i n c o m p e t e n c e   o f   g r a n t o r   o r   m o r t g a g o r ,   u n k n o w n
                  h e i r s ,   e t c . )   w h i c h   c a n n o t   b e   d e t e c t e d   i n   t h e
                  e x a m i n a t i o n   o f   t i t l e .          T h e s e   f a c t s   w i l l   b e   p r e s e n t e d   i n   a   p r e l i m i n a r y   t i t l e
                  H u m a n   e r r o r   -   i t ’ s   a   f a c t   o f   l i f e   t h a t   p e o p l e   o v e r  c o m m i t m e n t .   T h i s   c o m m i t m e n t   i s   i s s u e d   t o   t h e
                  t i m e   h a v e   m a d e   e r r o r s   o n   d o c u m e n t a t i o n   t h a t  m o r t g a g e   l e n d e r ,   i n   t h e   c a s e   o f   a   l e n d e r ' s   p o l i c y ,   o r
                  a f f e c t s   t i t l e   t o   a   p r o p e r t y ,   a n d   w i t h   T i t l e   i n s u r a n c e  p u r c h a s e r ,   i n   t h e   c a s e   o f   a n   o w n e r ' s   p o l i c y ,   b e f o r e
                  y o u   a r e   p r o t e c t e d   f r o m   i s s u e s   a r i s i n g   f r o m   t h e s e  t h e   c l o s e   o f   e s c r o w .
                  d e f e c t s .

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