Education series

What is Title INsurance?

For a reasonable, one-time fee, an “Owner’s” title insurance policy will protect your property rights for as long as you or your heirs own the home.

Owner’s Policy

Protects your ownership rights.

Owner’s title insurance provides protection to the homeowner in case someone sues and says they have a claim against the home from before the homeowner purchased it.

When you purchase your home, you receive a document called a “Warranty Deed,” which shows the seller transferred their legal ownership or “title” to you.

Title insurance can protect you if someone later sues and says they have a claim against the home from before you purchased it.

Common claims come from a previous owner’s failure to pay taxes or from contractors who say they were not paid for work done on the home before you purchased it.

Lender’s Policy

Protects your lender’s rights.

Lender’s title insurance protects your lender against problems with the title to your property such as someone with a legal claim against the home

Lender’s title insurance only protects the lender against problems with the title, which is why you want the home seller to purchase an owner’s title insurance policy for your protection.

Details, Details

How Does Title Insurance Work?

What things are covered?

  • Undisclosed heirs

  • Forged deeds, mortgages, wills, releases, and other documents

  • False impersonation of the true landowner

  • Deeds by minors

  • Documents executed by a revoked or expired Power of Attorney

  • False affidavits of death or heirship

  • Probate matters

  • Fraud

  • Deeds and wills by persons of unsound mind

  • Conveyances by undisclosed divorced spouses

  • Rights of divorced parties

  • Deeds by persons falsely representing their marital status

  • Adverse possession

  • Defective acknowledgements due to improper or expired notarization

  • Forfeitures of real property due to criminal acts

  • Mistakes and omissions resulting in improper abstracting

  • Errors in tax records

WHAT ARE THE STEPS?

Step 1: Request Title Insurance

The first step in the process is to request Title Insurance. Your Realtor or Lender typically will do this for you.

Step 2: Records Search and Title Examination

We conduct an exhaustive search of all the historical records related to the property. These include mortgages, wills and liens, and other documents. This will identify any problems with the current deed to the property.  Errors in the Title are more common than you might think.

Step 3: Commitment Issued

The title commitment is an agreement to insure title insurance on the terms set forth. The commitment specifies the amount of insurance, the insured parties, exceptions, and requirements to be met to issue the policy.

Step 4: Revealing Hidden Issues

A cloud on the title is any irregularity in the chain of title (ownership)that would give a reasonable person pause before accepting a conveyance of title. These could include inaccurate surveys, unpaid taxes or liens, or encumbrances, as well as many other potential issues.

Step 5: Cloud Cleaning

The title agent works to clear any “clouds” to the title. For example, if there is an open judgment on the property, the title officer contacts the parties involved to get the judgment paid and clear the title. The title officer works with buyers, sellers, lenders and Realtors to resolve the often complex and varied title issues that can arise during the search and examination process.

Step 6: Low One-time Payment

Unlike other insurance policies, there is a one-time premium payment for title insurance. This premium will be included in the closing costs, along with other fees associated with closing, such as legal fees and taxes. The policy is guaranteed for the lifetime of the buyer’s ownership.

Get In Touch

Secure Title

1055 East 2100 South, #206
Salt Lake City, UT 84106

(801) 883-9499

Mike@SecureTitle.com