What is Title Insurance?

Title insurance is something that most buyers and sellers have heard many times, but the majority of those people aren't exactly sure what it is. So what is title insurance? Title insurance provides coverage for losses due to defects in title that occurred prior to a new homeowner's ownership. It is the only protection against things such as unpaid taxes and liens, judgements against the seller, fraud or forgery on deeds and wills, missing heirs, transfers of title by a minor, or other issues that might go undetected until after closing and which could possibly jeopardize the new homeowner's ownership and investment.

Why does someone need title insurance? There are many defects in the title that may not be revealed in the title examination. Some examples of these hidden defects might be fraud or forgeries on documents such as deeds and wills, missing heirs, defective deeds, clerical errors in records, claims arising because a married person conveyed property without his or her spouse, and transfers of title by a minor. An owner's title policy will protect and defend the homeowner's investment if any claims are made against the property, whether the claim in valid or not, at no additional cost to the homeowner.

I hope the above clears up some of the confusion that many of us have about what title insurance actually does. As with every case, it is always best to consult a real estate attorney if a problem with your title ever arises.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com