Get 1 Who Is Protected By Title Insurance? - Castle Title

Common exceptions would be things such as prior unreleased mortgages on the property, easements, taxes, restrictions on the use of the property, and any other limitations on the title such as homestead rights or survey issues if no survey has been performed.

A standard title insurance policy insures against: A recorded deed in the chain of title that was not properly delivered; There are several differences between an extended coverage policy of title insurance and a standard coverage policy of title insurance.

Inexperienced buyers may confuse it with homeowner's property insurance, but the two are vitally different. Title insurance usually excludes protection against environmental hazards or any incidents that lead to the deterioration of the property's condition after closing.

A standard policy insures primarily against defects in title which are discoverable through an examination of the public record. This includes defects in title or recorded liens or encumbrances, such as unpaid taxes or assessments, and defects due to lack of access to an open street.

What Is Title Insurance? Title insurance is a contractual obligation that protects against losses that occur when title to a property is not free and clear of defects (e.g. liens, encumbrances and defects that were unknown when the title policy was issued). Title insurance also guarantees loan priority.

Title insurance is a policy meant to protect home buyers and mortgage lenders from damages or financial losses caused by a bad title due to title defects. Most title insurance policies cover all the common claims filed against a title, including outstanding liens, back taxes and conflicting wills.

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

Title-insurance policies may exclude coverage in the event of lot-line debates, unrecorded mechanics liens, and easement problems. Extended coverage can provide protection against such claims.

Any defects created after the issuance of the policy, or defects that you create. Issues arising as the result of failing to pay your mortgage. Issues arising as the result of failing to obey the law or certain covenants. Specific taxes and assessments.