Title Insurance

WHAT IS TITLE INSURANCE AND WHY DO YOU NEED IT?

The closing process starts when the contract is signed and includes the review and identification of any title issues, as well as, clearing those issues in order to allow the transaction to proceed to settlement. Bringing the parties to the closing table as smoothly as possible with full understanding of the process is one of the core goals of Terra. We understand that issues about title do arise and need to be addressed. Our immediate access to in house legal advice and direction when there are problems with the title to a property is one of the primary drivers of our success rate. We have been able to close transactions where other title companies were simply not equipped to do so. ​

Examples of other title issues that can arise:

  • Errors or omissions in deeds
  • Mistakes in examining records
  • Forgery
  • Fraud
  • Falsification of records
  • Undisclosed heirs
  • Easement judgment
  • Divorce Issues
  • Unpaid child support lien

Title insurance protects you against these and many other “hidden” risks that may arise. There is no statute of limitation on a title insurance policy. ​

Gathering information on the property by completing a title search is where most of the title premium dollar goes. By searching, examining and clearing the title to your home before you buy it, your owner’s title policy offers protection for your property rights for as long as you and your heirs own your home. As property changes hands, mistakes, errors and/or omissions, often made long before you expressed interest in the property, can place your ownership in dispute. The seller may have:

  • Avoided disclosure of using the property as collateral for an unpaid loan
  • Fraudulently claimed to be the sole owner
  • Failed to pay real estate taxes

Even a simple mistake in the recording of legal documents, improper execution of legal instruments or the reappearance of undisclosed or missing heirs can result in the loss of your property.

Having no title insurance exposes you to significant risk in the event a title defect is present. If a property is purchased without title insurance, and a defect is later found, the cost of curing this defect rests solely with the home owner.