What is title insurance?
A title insurance policy contains a statement of the condition of ownership of real property. A title policy indemnifies you against certain loss or damage that you might incur relative to title defects on your property. In the event of a lawsuit challenging your ownership interest, the title insurance company provides a legal defense for the policyholder and, if the suit is lost, pays all valid claims or losses up to the face amount of the policy.
Why do I need title insurance?
A forgery 50 years ago; a deed executed under duress; a long lost heir; an error by the clerk in the county recorder's office; a misapplied tax payment: these are but a few of the hidden "title defects" that could cause you to lose the single largest investment in your lifetime, your home. And even if you don't lose your property altogether, title problems could make it difficult or impossible for you to sell your home in the future.
You don't want an event that occurred before you bought the property to deprive you of your ownership or your right to use or dispose of the property. And you don't want to have to pay the ruinous costs of defending your property rights in court. A title insurance policy from a nationally known, financially sound title insurance company is your best protection against defects that could remain hidden despite the most thorough search of the public land records.
When do I purchase title insurance?
For a one-time premium paid at the time of your settlement, you can receive a title insurance policy to protect against title defects or claims made against title. Your policy will protect you even after you sell the property or pay off any loan. The cost of title insurance will be reflected at settlement as part of your total closing costs.
In addition to your Owner's title insurance policy, your lender will almost always require you to purchase a title insurance policy to insure their interest in the property up to the face amount of their loan. The Lender's policy is only applicable to the specific transaction, and it provides coverage for the mortgage lien and it protects against errors made in the title search connected with that transaction, as well as any pre-existing clouds on title. Therefore, each new lender will want a lender's policy that is specific to their transaction, whether for a purchase or a refinance.
Why should I purchase title insurance from MBH?
At MBH, we strive to remedy all known title defects prior to closing. You can rely on our experienced staff to isolate and correct issues that would often go unnoticed or overlooked by others. This is why we offer our customers enhanced coverage policies as our standard form of title insurance, the ALTA Homeowner's Policy
We are also a licensed agent for some of the nation's largest and most secure title insurance underwriters. You can rest assured that if you need to seek protection from your title insurer, they have the financial ability to defend your claim, and they have the professional reputation for protecting their policy holders.