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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